IRDAI to Regulate Insurance Commissions: What it Means for Policyholders

• IRDAI to soon release draft regulations to control insurance commissions.
• Government will empower IRDAI with more authority over distribution expenses, including commissions.
• The move aims to keep commissions within appropriate limits to protect policyholders from higher premiums or reduced Incremental Capital Ratio (ICR).
• Complaints of high commissions harming policyholders prompted this regulatory action.
• IRDAI already has powers to set commission limits; Insurance Amendment Bill will enhance transparency on management expenses.

Why It Matters: IRDAI's new regulations aim to protect policyholders by controlling excessive insurance commissions.