Tarun Chugh, MD and CEO of Bajaj Allianz Life Insurance, has indicated that the company still has scope to bring down commissions paid to agents and distributors. In an interview, Chugh noted that while the company already operates with one of the lowest commission structures in the industry, there is room for more efficiency through better use of technology and cost optimisation.
He stated, “There is still room for us to reduce commission,” adding that efficient processes and digital onboarding have helped in controlling distribution expenses. Chugh emphasised the importance of long-term customer value over short-term sales incentives, particularly when focusing on protection products.
On industry growth, he remained optimistic, especially about life insurance penetration in India, citing significant untapped potential. He believes the regulator’s emphasis on customer-centricity and expense management will benefit the sector in the long run.
Bajaj Allianz Life continues to focus on tech-led solutions, simplified onboarding, and designing products aligned with policyholders’ evolving needs while aiming to maintain profitability through disciplined cost structures.
