IRDAI proposes major commission reform

* ⁠India’s insurance regulator is considering a shift from the current high upfront commission model to a spread-out commission structure, where agent commissions are paid over the entire life of the insurance policy instead of being concentrated at the time of sale. * Positive for insurers, mixed for distributors: The move could reduce upfront acquisition costs, improve profitability and policy persistency, and discourage mis-selling. While it may benefit life insurers such as $HDFCLIFE , $SBILIFE , $ICICIPRULI and LIC over the long term, insurance distributors and agents could see lower initial earnings as commissions become staggered