Multi-year health insurance policy sales dip as agents' commissions drop

Irdai's new accounting norms for premium reporting has resulted in insurers revising commissions on multi-year health policies

The sale of multi-year health insurance policies has declined following the implementation of new accounting norms by the insurance regulator for non-life insurance companies to report their premiums. As a result, insurers have revised the commission structure for agents, making these policies less attractive for them to sell, according to sources.

  “There is a drop in sales of multi-year health insurance policies after the change in accounting norms. Agents are important distribution partners for health insurance policies, and after the revision in norms, they find it less attractive to sell these policies as the commissions will be distributed across the