Chennai: Star Health and Allied Insurance Company has said that the provisions relating to agent commissions in the Insurance Regulatory and Development Authority of India’s (IRDAI) consultation paper are a step in the right direction.In Sept 2026, the insurance regulator released a consultation paper titled Recalibrating Economics of Insurance Distribution, proposing a comprehensive framework of reforms covering expenses, commissions, transparency and the use of digital infrastructure.“The consultation paper has introduced the concept of capping commissions, which existed in the past. The regulator is looking at bringing it back. I feel it is a step in the right direction,” Star Health and Allied Insurance Company MD and CEO Anand Roy told reporters here on Thursday.“There are concerns over high commissions being paid in the insurance industry and products becoming expensive, affecting affordability, while penetration is not increasing. The regulator wants to increase penetration. The objective is to pay an average commission instead of a high commission on one policy, but bring in more policies and customers. Of course, when their income reduces, there will definitely be some kind of representation. But we will wait for the final guidelines from the regulator,” he added.Roy was speaking on the sidelines of the launch of the company’s new health insurance product, Young Star NEO. The policy allows customers’ renewal premiums to remain unchanged until a claim is made. After a claim, the renewal premium is calculated based on the customer’s entry age plus one year, instead of their actual age at renewal. The policy is available to individuals aged 18 to 40.
