Insurance commission overhaul: Agents' pay deferred, IRDAI eyes cost cuts

• Life Insurance industry committee proposes replacing front-loaded agent commissions with a deferred structure.
• The proposed model would spread commissions over 5 years, contingent on policy renewal, to incentivize policy longevity.
• IRDAI is scrutinizing distribution and management costs in General and Health Insurance, requesting 5 years of expense data.
• Suggestions include reducing Expenses of Management (EoM) limits by 5-10% for older General and Health insurers.
• These changes aim to curb mis-selling and potentially make insurance cheaper and more sustainable for policyholders.

Why It Matters: Proposed insurance commission changes could make policies cheaper and more sustainable.