Category: Business, Services

India has a huge, under penetrated and badly needed cleaner incentives insurance market. Reuters said IRDAI is planning a commission overhaul that would replace large upfront distributor payments with commissions staggered over the life of a policy. The aim is to stop mis-selling, reduce high distribution costs and bring India closer to compensation models used in the U.S., UK and Europe. Reuters said current practices allow for commissions as high as 40 percent upfront and this has encouraged aggressive sales tactics.