Online aggregators may have to disclose insurance commission received by them: Report

4 Jul 2022 , 10:23 AM

The Insurance Regulatory and Development Authority of India (IRDAI) is considering a proposal that makes mandatory for online platforms such as Policybazar, as well as other corporate agents to disclose their commissions they receive from insurance companies for selling their policies.  to have a single limit for expenses made by insurance companies.

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

Currently, in accordance to the continuous endeavour towards promoting ease of doing business for insurance companies in India, IRDAI has allowed separate limits for expenses at the business level and for operations, commissions and rewards. 

It is expected that this proposal may bring transperancy and customer protection and also reduce the misselling of products which will enable insurers to better focus their efforts with the ultimate goal of improving coverage and penetration.