IRDAI Proposes 20% Cap on Commission of Insurance Agents; Seeks Stakeholder Views

IRDAI Proposes 20% Cap on Commission of Insurance Agents; Seeks Stakeholder Views The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a 20 percent cap on the agents’ commission for insurance companies. A draft consultation paper has also been released on the commission limit. Insurers will also have a board-approved policy on commissions of the agents. The insurance industry regulator has proposed a commission cap of 20% of the gross premium for general and standalone health insurers in an "Exposure Draft." For general insurers and standalone health insurers, a cap has been recommended on the commission, compensation, and reward of agents. For general and standalone health insurers, the IRDAI has also suggested capping the expense of management (EoM) at 30% of the total premium. Commissions and fixed costs are included in the management costs for insurers. All the stakeholders are requested to submit their comments/suggestions, if any, on the proposed draft regulations in the given format on or before 5.00 PM 14th September 2022 to [email protected] with a copy to [email protected].