Insurance reforms: protect policyholders and keep the door open to investors
Irdai expects savings from lower acquisition and operating costs to reach policyholders through lower or more moderate premiums, better policy returns or stronger claims outcomes. But such a pass-through is not automatic. Premiums reflect expected claims, reinsurance, capital, operating costs, competition, product design and underwriting, not commissions alone. For regulated products such as motor third-party insurance, reducing commissions may not lower the policy price unless the tariff itself changes.
