The Insurance Regulatory and Development Authority of India (IRDAI) is considering changes to its proposed overhaul of insurance distribution norms following feedback received from industry stakeholders, according to sources who spoke to NDTV Profit.
The regulator is now working towards issuing an exposure draft of the proposed regulations by mid-December, the sources said. The exposure draft will be a revised, non-final version of the regulations, published for public review before the rules are finalised.
The move marks the next stage in IRDAI's attempt to overhaul the economics of insurance distribution, following its September 23 consultation paper, Recalibrating Economics of Insurance Distribution.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The proposals sought to introduce product- and channel-specific commission caps, progressively lower insurers' expense-of-management limits and simplify the distribution architecture into three categories.
The proposals triggered significant pushback from insurance intermediaries. The Insurance Brokers Association of India warned that the changes could put over 10 lakh livelihoods at risk and sought the Prime Minister's intervention. Brokers also questioned whether lower distribution costs would necessarily translate into better outcomes for policyholders.
IRDAI subsequently extended the feedback deadline to October 31 after receiving over 650 responses.
The regulator is now evaluating the submissions before putting out the revised regulations for wider scrutiny.
Also Read | Tightening The Grip: IRDAI's Course Correction On Insurance Distribution Costs
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
