IRDAI chief questions rising distributor commissions
In short
IRDAI Chairman Ajay Seth said insurance distribution costs have climbed fast. He said one distributor’s commission rose from about 8% to 24% in three years, and another from 6-7% to 38%.
He said policyholders should benefit first if costs rise. It is not stated in the available reporting whether IRDAI will take action.
What the reporting says
IRDAI Chairman Ajay Seth questioned sharply rising insurance distributor commissions, with one distributor’s rate said to have risen from about 8% to 24% in three years and another from 6-7% to 38%. He also cited a large distributor with post-tax profit at 44% of commission income. The comments raised concerns about whether policyholders are getting enough value, but no action was stated in the available reporting.
Why it matters
IRDAI Chairman Ajay Seth flagged rising commissions in insurance distribution, citing one case moving from about 8% to 24% in three years and another from 6-7% to 38%. He also referred to a large distributor with post-tax profit equal to 44% of commission income. The remarks point to concern over whether higher distribution costs are improving value for policyholders. Any regulatory response was not stated.