The Economic Times

IRDA's new consultation paper proposes major reforms to improve insurance distribution and reduce complaints

Irda's recent consultation paper aims to restructure insurance distributor commissions to enhance market efficiency and penetration. The report highlights India's low insurance penetration rate compared to global averages and emphasizes improving policy persistency. It suggests restructuring compensation models, linking payouts to ongoing services, and reducing initial commission incentives to curb misselling. This proposed overhaul aims to foster greater trust and improve customer service within the insurance sector.