Regulator seeks to make insurers have clear policy for agents' commission

Boards will make written norms that will be reviewed annually, says draft IRDAI proposal

The insurance regulator has proposed a cap on commissions paid by the health and general insurance companies at 20 per cent of gross written premium (GWP) -- a plan that could impact health insurers because their commissions are much higher than the prescribed limit. According to industry players, general insurance firms’ commissions are around 20 per cent of GWP.

This comes after the Insurance Regulatory and Development Authority of India’s (Irdai’s) move to cap non-life insurers’ expenses of management at 30 per cent of GWP.

According to the draft norms released on Wednesday, insurance companies need to have a board-approved policy on