India insurance regulator to oversee smooth transition to new commission rules, chairman says

By Ashwin Manikandan MUMBAI, Oct 15 (Reuters) — India's insurance regulator will ensure an "orderly transition" to proposed reforms governing insurance sales, with no intention of disrupting insurers or distributors, its chairman Ajay Seth said on Thursday. The Insurance Regulatory and Development Authority of India (IRDAI) last month proposed capping commissions on a range of insurance products and tightening insurers' expense limits to lower policy costs and curb mis-selling. "The idea is to allow for an orderly transition from the present system to a better system," Seth told reporters on the sidelines of an event. "There's absolutely no intention that there should be a disruption for any market player or any individual." Distributors and analysts have, however, warned that the rules could upend established business models, weigh on growth and cost jobs in an industry that relies heavily on agents and banks to sell policies. Seth, who met insurers and distributors this week, said their requests so far have been relaxations for smaller players and low-value policies, along with a transition path. However, no one has objected to the problems the regulator identified or the broad d