IRDAI Commission Cuts: Will Insurance Penetration Take A Hit In Tier 2, 3 & 4 Cities?

IRDAI’s proposed commission changes could have implications for insurance penetration, particularly across Tier 2, Tier 3 and Tier 4 cities where small-ticket policies are important. Lovaii Navlakhi, MD & CEO, International Money Matter, discusses the need for greater customer awareness, adequate insurance cover and possible changes to upfront commissions and renewals. Nilesh Sathe, former member of IRDAI, explains how lower bank commissions could affect bancassurance and Credit Life products. The discussion also looks at customer choice, loan-linked insurance and how government schemes could support wider insurance coverage.