GST cuts: Insurers still negotiating commission revisions with distributors

Life insurers have formed committee to discuss the capping of distributor commission

More than two months after rationalisation of goods and services tax (GST) on individual life-insurance premiums and the withdrawal of input-tax credit (ITC), life-insurance companies are still negotiating commission revision with distributors.

 

While revision in commission for the agency channel has been finalised and put into effect, discussion with large bancassurance distributors is on, multiple sources aware of the development said. 

Smaller insurers have passed it on to their channel partners, a source added. 

Sources in the know said a large part of negotiations with distributors had been completed, and the