{
  "id": 10318305,
  "title": "Lower costs should benefit policyholders: Irdai",
  "url": "https://urgent.news/2026/09/28/lower-costs-should-benefit-policyholders-irdai",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-28T00:00:00.000Z",
  "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-irdai-chairman-ajay-seth/articleshow/134524622.cms"
  },
  "original_language": "en",
  "account": "The chairman of India's Insurance Regulatory and Development Authority (Irdai), Ajay Seth, spoke with reporters Shilpy Sinha and Sangita Mehta about the regulator's consultation paper on proposed sectoral reforms for the insurance industry. The principal objective of the paper is to enhance value to policyholders, thereby increasing trust and uptake, which will expand coverage and improve the economics of insurance. Insurers are expected to pass on the savings from lower commissions to customers, resulting in better returns for life insurance savings products and improved claim ratios for general insurance. Mis-selling is a significant concern, driven by high upfront sales commissions and minimal persistency commission. To tackle this issue, Irdai proposes lowering first-year commissions, increasing payments as policies persist and introduces a public insurance registry to document and disclose poor conduct. The new framework aims to take effect by January or April 2027, with public consultation preceding the implementation of final regulations.",
  "summary": null,
  "key_points": [
    "Irdai aims to lower insurance costs for policyholders",
    "Proposed reforms include reduced first-year commissions",
    "Public insurance registry to curb mis-selling"
  ],
  "editors_take": "Lower costs for insurers from reduced commissions should benefit policyholders with better returns on life insurance savings products and improved claim ratios on general insurance policies.",
  "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."
}