IRDAI Cuts Insurance Distribution Costs Significantly

The Hindu - Business · business

India's insurance regulator, IRDAI, is proposing significant cuts to distribution costs, including expenses of management (EoM) and commissions. This move aims to reduce the sector's high-cost, commission-led structure. For life insurers, EoM limits will drop from 30-35% to 12.5% within five years. General insurers will see limits trend towards 20% from 32.1%. These changes follow February's increase of foreign direct investment limit to 100%. The regulator also plans to simplify registration and lower capital requirements for new entrants.