India proposes wide-ranging insurance reforms to bring down costs

MUMBAI, Sept 23 (Reuters) - India's insurance regulator proposed overhauling commission rules to cap payouts, link them to product complexity and spread life insurers' commissions beyond a policy's first year, a discussion paper released late on Wednesday showed.

The proposals are part of the Insurance Regulatory and Development Authority of India's push to reform the sector after New Delhi this year opened it to 100% foreign ownership, and target costs it says have ballooned since commission limits were scrapped in 2023.

Reuters had reported ⁠in July that the regulator is planning reforms to curb mis-selling in the sector.

Here are the key details of the proposals:

Reporting by Ashwin Manikandan; writing by Ira Dugal; Editing by Maju Samuel

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