Bid to mitigate margin impact: Life insurers rejig agent fee structures

The companies had to launch all their products as per the new norms by December 31, 2024

Listed life insurance companies have modified their commission structure based on persistent performance of various distribution channels, and redesigned products to mitigate the impact of the revised surrender value norms. The Insurance Regulatory and Development Authority of India (Irdai) revised the surrender value guidelines effective from October 1, 2024.

 

HDFC Life has revised its commissions based on the persistency profile of the distributor. “It is a combination depending on the level of business, partners, inherent persistency in that channel, and so on. We have done a combination of commission clawback, commission deferral, and reduction in commission. It is fairly bespoke