Will IRDAI Tweaks Squeeze Distributor Incomes? Former Member Nilesh Sathe Breaks It Down

IRDAI’s proposed changes to distributor commissions and expenses could reshape the economics of insurance distribution. The draft norms may put greater pressure on bancassurance and brokers, while individual agent commissions remain largely unchanged. Nilesh Sathe, former member of IRDAI, explains how brokers, agents and digital platforms may need to realign operations, including call centres and technology spending. He also discusses the proposed reduction in expense-of-management limits, industry feedback to IRDAI and why stakeholders are seeking greater flexibility before the final regulations are announced.