Non-life insurers may have to reduce payouts to adhere to EoM norms

Unlisted life players may rack up a commission war to gain market share

The new guidelines on expense of management (EoM) and commission payout may not necessarily reduce commissions, but payouts to distributors, which sometimes exceed the prescribed commission limits, could possibly come down so that insurance companies remain within the regulator’s EoM cap, say analysts.

Experts have suggested that general and health insurers may have to reduce their payouts to adhere to the EoM caps prescribed by the regulator, while listed life insurance companies may see themselves involved in a “commission war” with the unlisted mid-tier companies, which may be in a position to offer better payouts to distributors since they aren't