Indian regulator proposes 20% ceiling for insurance agents’ commissions

The proposal will also require insurers to have a board-approved policy on commissions.

The Insurance Regulatory and Development Authority of India (IRDAI) is proposing a 20% ceiling on the commissions given to insurance agents and requires insurers to have a board-approved policy on commissions, rewards, and remunerations paid to agents.

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In an exposure draft, insurance agents from general insurance and health insurance selling insurance can only get a maximum commission of 20% of the gross written premium offered by the insurer.

The goal is to give insurers flexibility when managing their expenses.

Stakeholders can submit their comments and suggestions on the proposed draft regulations to the IRDAI until 14 September.