IRDAI proposes product-wise commission caps, new-business limits

IRDAI's draft norms propose product-specific commission ceilings and seller-level mis-selling tracking to control distributor remuneration that ballooned 125% against 28% new-business growth. Insurtech profitability was built on commission arbitrage; this reset forces builders to choose: cut acquisition costs, move upmarket, or own distribution. Direct models and insurtech-as-a-service are now table stakes.

Source: ET BFSI ↗