Decoding The Commission Gap That Sparked A Bloodbath In Insurance Stocks

For insurance distributors, the commission earned on every policy is central to their business model. It determines how much they can spend to acquire customers, the products they prioritise, and the economics of their partnerships with insurers. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a sweeping overhaul of the insurance distribution ecosystem in its consultation paper ‘Recalibrating Economics Of Insurance Distribution’.