India’s insurance industry could be heading for a significant rethink of how products are sold and, more importantly, how much distributors are paid for selling them, according to a report by Kotak Institutional Equities.
The IRDAI has proposed a new distribution framework that would cap commissions across insurance products and channels, alongside tighter limits on insurers’ expenses. The proposals aim to reduce distribution costs and make insurance products more cost-efficient for customers.
