LIC expects limited impact from IRDAI’s proposed commission caps, says CEO

BusinessLine reported that LIC expects limited impact from the commission caps proposed by IRDAI, the insurance regulator. LIC's CEO said the insurer's existing controls on distribution costs offer protection, even as it prepares to align certain products with the revised norms. The report did not give the size of the proposed caps or a date. A commission cap is a limit set by the regulator on how much an insurer can pay agents and distributors for selling its policies; distribution cost is what an insurer spends to reach customers and sell policies. LIC, or Life Insurance Corporation of India, is the country's largest life insurer and is listed on the exchanges. The report gives no figures for the cost of aligning products with the new norms.

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