The Insurance Regulatory and Development Authority of India (IRDAI) has proposed several changes aimed at making insurance products simpler, more transparent and easier for customers to understand. The proposals form part of the regulator’s broader effort to improve policyholder protection and address concerns around insurance distribution, product design and customer experience.
Among the proposed changes are measures concerning insurance commissions and distribution costs, greater transparency in sales practices, stronger safeguards against mis-selling and changes designed to improve customer understanding of policies. The reforms are particularly relevant to policyholders because insurance products can involve complex exclusions, conditions, waiting periods and other terms that may not always be fully understood at the time of purchase. Greater disclosure and clearer communication could help customers make more informed decisions.
The proposals also reflect a wider shift towards making policyholder outcomes and sales quality more important within insurance distribution. For insurers and intermediaries, the changes could require stronger documentation, monitoring and customer-servicing processes, while policyholders may see greater emphasis on transparency and suitability. The proposals remain subject to the regulatory process and stakeholder feedback before any final framework takes effect.
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