As part of the regulatory changes to transition from a rule-based to a principle-based system and to facilitate ease of doing business for insurers, the Insurance Regulatory and Development Authority of India (“IRDAI”) has recently re-enacted regulations governing commission payments and expenses of management of insurers.
Key changes include omission of product-level commission caps as well as segment specific limits on expenses of management in case of general and health insurance businesses. These changes would indeed afford increased flexibility to insurers in managing their expenses and are also likely to enable insurers to be more responsive to market forces and bring in better product pricing for customers.
Listen to our Partner, Ronak Ajmera, discuss these regulatory changes and their implications for insurers.
Ronak specializes in the areas of domestic and cross-border mergers and acquisitions, corporate and business restructuring, carve-out transactions, private equity, strategic investments, fund-raises, joint ventures, technical collaborations and India entry advice.