The Economic Times

IRDAI faces pushback over proposed caps on insurance distribution costs, impacting fintech and insurer stocks

IRDAIs 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.