IRDAI chairman says high commissions are driving mis-selling
In short
Ajay Seth said insurance mis-selling is happening because upfront commissions are too high.
He said any cost savings should reach customers through lower premiums, slower premium increases, better returns on savings products, or better claim ratios. The report does not say when any policy change will happen.
What the reporting says
Ajay Seth said insurance mis-selling is arising because upfront commissions are too high, with the publisher summary saying the benefit of cost efficiency should be passed on to customers. He said life insurance savings products should deliver better returns and general insurance should improve claim ratios. He also said cost savings should mean lower premiums or slower premium increases, but the source does not state any new rule or timeline.
Why it matters
IRDAI chairman Ajay Seth tied mis-selling concerns to high upfront commissions and said cost efficiencies should be passed through to policyholders. The summary says that could mean lower premiums, slower premium increases, better savings-product returns, or improved claim ratios in general insurance. The reporting points to pressure on insurers and distributors, but it does not give a specific policy change or implementation date.