Insurance market set for competitive premiums under new IRDAI commission norms

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new norms on commission payments to insurance agents and intermediaries, aiming to foster transparency and efficiency in the insurance market. Industry experts anticipate that these regulations will lead to more competitive premiums and better governance practices. \r

Sharad Mathur, Managing Director & CEO of Universal Sompo General Insurance Company, sees the circular as a positive step towards fair commission structures, potentially resulting in lower premiums for customers. Aditya Mall, Appointed Actuary at Future Generali India Life Insurance, highlights the focus on ethical conduct and governance, emphasizing the importance of aligning intermediary incentives with customer interests. \r

The regulations mandate insurers to establish transparent commission policies approved by the board, promoting fairness and compliance. Enhanced governance and reporting are expected to enhance accountability and trustworthiness in the insurance industry, ultimately benefitting customers.