Govt, IRDAI Target High Insurance Commissions; New Regulations Loom

• Government and DFS Secretary express concern over excessive insurance commissions impacting policyholders.
• IRDAI has initiated work on draft regulations to curb high commissions, requesting segmental payout data from companies.
• Concerns are particularly high in motor-own damage and health insurance segments.
• DFS Secretary M. Nagaraju confirmed IRDAI will soon issue draft rules to protect policyholders and control distribution costs.
• High commissions can lead to increased premiums or low Incremental Capital Ratio (ICR), potentially affecting stocks like HDFC LIFE, MAX FINANCIAL.

Why It Matters: IRDAI is set to regulate high insurance commissions to protect policyholders and control costs.