Online aggregators may be required to disclose insurance commissions they have received: report

The Insurance Regulatory and Development Authority of India (IRDAI) is considering a proposal that requires online platforms such as Policybazar, as well as other commercial agents to disclose the commissions they receive from insurance companies for the sale of their fonts. to have a single limit for expenses incurred by insurance companies.

According to the report, IRDAI may soon consider a proposal that aims to have a single limit for expenses made by insurance companies, including operating expenses, commissions, rewards, etc. Additionally, under the proposed rules, web aggregators will be required to disclose their charged commission rates and rewards they are qualified to receive from insurance companies for the sale of their policies, products and plans.

Currently, in line with the continued effort to promote ease of doing business for insurance companies in India, IRDAI has allowed separate limits for company-level expenses and for operations, commissions and rewards.

It is expected that this proposal can bring transparency and customer protection and also reduce the mis-selling of products, which will allow insurers to better focus their efforts with the ultimate goal of improving coverage and penetration.