# ₹10 crore cover at 70? Insurance reform must start with the buyer

> Insurance reform must prioritize buyer suitability over sales incentives.
- Title: ₹10 crore cover at 70? Insurance reform must start with the…
- Summary: Insurance reform must prioritize buyer suitability over sales incentives. India's insurance regulation should focus on product suitability for buyers rather…
- Keywords: irdai, insurance, commission, policyholder, mis-selling, suitability, distribution, news, india, crore, cover, reform
- Source: mint — https://livemint.com/money/personal-finance/10-crore-cover-at-70-insurance-reform-must-start-with-the-buyer-11792393269745.html
- Published: 2026-10-19T11:56:37+00:00
- Read time: 1 min
- Topics: irdai, insurance, commission, policyholder, mis-selling, suitability, distribution, news, india
## Current insurance model
The current insurance model is costly and heavily incentivized with sales targets.
## Irdai consultation paper
Irdai's September 23 consultation paper recognizes the model's cost and incentives.
## Mis-selling problem
Life insurers sell high-value products to seniors without assessing suitability.
## Irdai's recommendations
Irdai suggests reducing expense limits, caps on commissions, and tighter mis-selling controls.
## Data shows issues
Corporate agents' new premiums rose 28% from FY23 to FY25 while distributor remuneration jumped 125%.
## Suitability requirements
Regulation should assess age, income, liquidity, and risk capacity before selling products.
## Reforms needed
Remuneration must follow policy duration, and unsolicited sales need tighter controls.
## Key takeaway

India's insurance regulation should focus on product suitability for buyers rather than commission caps to prevent mis-selling.