Irda Likely To Decrease Remuneration To Brokers

Sources said the commission paid to brokers is under review as 17.5 per cent is a very high amount, particularly for companies in the life insurance business. A final decision on the commission rate is to be taken after the IRDA board meets to decide on the other modalities for brokers. The final guidelines on brokers is expected to be announced next month.

Another clause that will be introduced in the final guidelines pertains to the minimum number of products that the brokers will be required to have in their portfolio. According to sources, each broker will need to have products of at least three insurance companies in a particular business in its portfolio.