Bancassurance

IRDAI is finalising new insurance commissions structure to curb mis-selling by bringing staggered compensation model spread across a policy’s entire lifecycle, instead of huge upfront payouts. Driven by rampant consumer complaints regarding mis-selling and skyrocketing customer acquisition costs, the regulator plans to eliminate big and faster payouts to distributors. Moving toward staggered, effort-based compensation and enforcing individual digital accountability via ‘Seller Tagging’ will ensure that distributors only succeed when the policyholders remain protected. Ultimately, building this foundation of transparency and consumer trust is exactly what India needs to safely advance its insurance penetration and secure a financially resilient future for millions.