Insurance brokers flag commission caps; policyholders, jobs at risk

Insurance brokers have raised concerns over the Insurance Regulatory and Development Authority of India's (IRDAI) proposed reforms on insurance distribution, warning that the broad commission caps and a one-third cut in insurers' expense limits could weaken customer service, reduce jobs, and slow insurance expansion. The Insurance Brokers Association of India (IBAI) argues that the proposed measures could undermine insurance brokers, who are legally required to act in the customer's best interest, unlike tied agents.

IBAI has also questioned why an independently appointed broker should receive less remuneration than an insurer's tied agent, citing regulator data that shows 69% of complaints against general insurers relate to claims, while 63% of complaints are decided in customers' favor.

Brief written by urgent.news from The Indian Express's own syndicated text. Machine-written — may contain errors; check the original before relying on it.