IRDAI Targets Insurance Commissions: Data Shows Payouts Not Driving Growth

• IRDAI plans draft regulations to control insurance commissions, focusing on distribution costs.
• Rising commissions are not translating into proportional policy or premium growth, as per IRDAI's FY25 report.
• Life insurance commissions rose 18%, but policies declined 7.5% and premiums grew only 7%.
• General insurance commissions increased 20%, with policy growth at 16% and premium growth at 6%.
• IRDAI aims to balance customer interest, distributor incentives, and insurer viability for sustainable growth.

Why It Matters: IRDAI regulates commissions as data shows higher payouts fail to drive insurance growth.