Irdai plans steps to lower insurance costs

THE REMAINING 13-14% covers management costs, underscoring the need for overall efficiency.

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While staggering commissions instead of front-loading could curb mis-selling and reduce upfront costs, Seth said, adding any change must be evaluated carefully across channels to ensure stability, fairness and sustainability.The regulator will also review how insurers service policies, manage risk pools and run backend operations noting that lowering systemic costs can make products more affordable, improve value for policyholders and strengthen insurers’ sustainability.