NBFCs ask IRDAI for phased cut to insurance commissions

Non-bank lenders are urging IRDAI to adopt a phased approach to reducing insurance distribution commissions. The Federation of Indian Microfinance Companies (FIDC) will represent the NBFCs' case, arguing that infrastructure, manpower and credit-related costs must be recognised. Lenders warn that a sharp cut could make insurance distribution uneconomical and hurt insurance penetration. The industry wants a glide path similar to the one proposed for insurers on Expense of Management.

Source: ET BFSI ↗