SBI Life’s chief executive Amit Jhingran welcomed the regulator’s decision to bring back hard commission caps, underscoring the need for a gradual implementation.
Jhingran said the 2023 framework failed to deliver the expected cost discipline, prompting the re‑introduction of caps to curb commission inflation.
Parag Raja of Bharti Life echoed the sentiment, but added that insurers should adopt a tiered Expense‑Over‑Margin (EOM) structure based on size and scale, mirroring the mutual‑fund model.
HDFC Ergo’s MD Parthanil Ghosh warned that compliance could force a 30‑40% revamp of technology, consent‑management, and distribution systems.
The overarching goal of the reforms is to tighten expense limits, boost transparency, and make insurance more affordable and widespread, especially in rural markets.
Analysts predict that a phased rollout will ease short‑term operational costs, though the final framework will be decided at the next IRDAI board meeting.