The Insurance Shuffle, Moneyview IPO Day 1 & More
IRDAI Resets Insurtech’s Economics The IRDAI has proposed a radical overhaul of the insurance tech sector. The draft norms threaten…
IrdaI Proposes Overhaul of Insurtech Sector
The regulatory body IRDAI has unveiled a draft set of norms aimed at shaking up the insurance technology industry. The proposed changes could significantly impact how insurance distributors operate, from limiting commission rates to imposing tighter expense caps.
Under the consultation paper, mandatory or near-mandatory insurance products would see reduced commission rates for insurance distribution entities (IDEs), such as PB Fintech and Turtlemint's insurtech arm. Conversely, products requiring more sales and service effort would have a 15% maximum commission cap.
IRDAI also plans to lower the Existing Operating Margin (EoM) limits for both life and general insurers. Additionally, all IDEs exceeding ₹100 Cr in revenue will be mandated to conduct cost audits. The draft also bans mandatory bundling of loans with insurance policies and restricts employee incentives, introducing a three-tier distribution structure with clawback provisions to prevent misselling.
Written by urgent.news from Inc42's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
