IRDAI faces pushback over proposed caps on insurance distribution costs, impacting fintech and insurer stocks
· economictimes.indiatimes.com
IRDAI’s proposed caps on distribution commissions may face industry resistance after removal of earlier caps. The aim of the proposal is to push more funds into coverage rather than commissions to address issues of mis-selling. Disentangling the incentive structures into discrete components is a genuine requirement. Insurers with lower costs are expected to benefit. This will shape industry feedback to IRDAI's consultation paper.
The insurance regulator is likely to face industry pushback over proposals to lower insurance distribution costs by reintroducing caps removed in 2023. Its cons...