IRDAI Eyes Commission & EoM Cuts, Puts Insurance Sector in Focus

• The insurance sector is under market focus due to potential changes in commission structures and expense limits.
• IRDAI is preparing to reduce commissions in life insurance, aiming to make policies more affordable; an industry committee will submit suggestions on Dec 18.
• IRDAI expressed concern over high distribution and commission costs in general and health insurance, meeting with CEOs and requesting 5 years of cost data.
• A reduction in the Expense of Management (EoM) limit for general and health insurance is being considered, with suggestions for a 5-10% cut for older policies.

Why It Matters: IRDAI's push to lower insurance commissions and expenses could benefit policyholders.