Insurance Commission Expenses Surge in FY24 Following IRDAI’s Decision to Remove Caps

Mumbai: The insurance industry experienced a significant rise in commission expenses during the 2023-24 financial year after the sector regulator, the Insurance Regulatory and Development Authority of India (IRDAI), removed commission caps in April 2023.

According to the latest IRDAI Annual Report, life insurers saw a 22% increase in commission expenses, while general insurers experienced a dramatic doubling of their commission expenses compared to the previous year.

This move has had a substantial impact on the insurance sector, reflecting both the increased payouts to agents and the growing competition within the industry to expand their market share. The removal of commission caps has led to higher incentives for agents, potentially driving greater sales and business growth across both life and general insurance segments.