Hyderabad: After coming under criticism over excessive agent commission, insurance regulator IRDAI on Wednesday said that it will regulate the commission of insurance brokers and final regulations are expected to be out by next month.
“A sub-committee has been formed. It will decide on the cap on commission, though this and other remunerations for insurance brokers cannot be removed,” IRDAI chairman T.S. Vijayan said at the 12th annual summit of the Insurance Brokers' Association of India.
Speaking on the occasion, IBAI president Sanjay Kedia said the insurance brokers have requested the regulator to let the market forces decide what should be the remuneration, depending on the value that each market participant is adding.
According to a report was published in association with Ernst & Young, the broking channel had the potential to contribute 40 per cent of the gross direct premium in the non-life insurance business and 1.6 per cent of the new business premium in the life insurance business....