Industry majors welcome Irdai move to remove cap on agent commissions

Insurance regulator has replaced earlier cap on commission payments with overall cap on expenses; move is seen to provide more flexibility to insurers in managing their expenses

Industry majors have welcomed the move by the Insurance Regulatory and Development Authority of India (Irdai) to remove the cap on commission payments to agents, aggregators and brokers.

Under the Irdai (Payment of Commission) Regulations, 2023, notified on Tuesday, the insurance regulator has replaced the earlier cap on commission payments with an overall cap on the costs incurred by insurers. The move is widely believed to provide more flexibility to insurers in managing their expenses.

“The regulatory change is an eagerly awaited and path-breaking reform by Irdai. The removal of the cap on commission payments will positively impact the insurance