{
  "id": 10278375,
  "title": "Insurance mis-selling is arising: Ajay Seth",
  "url": "https://urgent.news/2026/09/27/insurance-mis-selling-is-arising-ajay-seth",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-27T19:19:53.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/banking/finance/insure/insurance-mis-selling-is-arising-because-upfront-commissions-are-too-high-ajay-seth-chairman-irdai/articleshow/134525727.cms"
  },
  "original_language": "en",
  "account": "Ajay Seth, chairman of India's Insurance Regulatory and Development Authority (Irdai), has outlined plans to tackle mis-selling and improve insurance sector efficiency. The regulator's consultation paper aims to expand coverage, make insurance more affordable and accessible, and reduce compulsory bundling, ultimately enhancing value for policyholders and boosting trust in the industry.\n\nSeth believes that the savings from lower commissions will be passed on to customers, improving returns on life insurance products and claim ratios in general insurance. With higher commissions no longer determining access to distribution networks, insurers and distributors will differentiate themselves through price, products, and service quality.\n\nMis-selling arises due to high upfront sales commissions and limited incentives for long-term policy persistence. The regulator seeks to create greater awareness of mis-selling, establish legal standards, and use a public insurance registry to document and disclose poor conduct. A significant portion of grievances received, around 40% to 50%, involve unfair business practices, including mis-selling.\n\nLowering first-year commissions can reduce mis-selling by removing the incentive for such practices and making persistence more rewarding for insurers. This move will encourage better behavior from distributors and ultimately benefit customers through better returns on life insurance products and more efficient claim settlements in general insurance.\n\nThe regulator plans to make public information about products, insurer and distributor performance, and claims settlement efficiency through a public insurance registry. This will address information asymmetry in the insurance sector and enhance transparency. Irdai's imposition of penalties on mis-selling cases sends a clear message that such conduct is unacceptable, but the regulator emphasizes the need for systemic improvements rather than imposing heavy penalties on every case.",
  "summary": null,
  "key_points": [
    "Ajay Seth, Irdai chairman, plans to tackle insurance mis-selling",
    "Savings from lower commissions to be passed to customers",
    "Public insurance registry to enhance transparency and trust"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}