Insurance Commission Caps Must Protect Consumers Without Shrinking Access

India’s insurance regulator wants to limit how much insurers can spend on selling policies.

It is concerned that large rewards may encourage sellers to push unsuitable products.

A study cited by the regulator found distributor payments grew much faster than new-business premiums.

Lower selling costs could help customers if the savings improve premiums, protection, or returns.

However, insurance can be difficult to explain and service, so agents and platforms still need fair payment.

Industry groups say strict limits could make rural and low-cost policies less attractive to sell.

They also warn that smaller insurers could be disadvantaged.

The article suggests linking more payments to renewals and continued customer service.

It says the success of the changes should be measured by better value and wider insurance access, not simply lower commissions.