Insurance commission: NBFCs seek 5-year transition period to reduce selling fee

Non-banking finance companies are seeking a five-year transition period to reduce insurance selling fees, as the industry raises concerns that lower commissions could affect expansion.

Industry Seeks Gradual Reduction

The request centres on giving NBFCs five years to adjust to reduced insurance selling fees. The industry says a gradual transition would provide time to manage the change.

Expansion Concerns

Industry representatives have warned that cuts to insurance commissions could hamper expansion. The concern places the level and pace of any fee reduction at the centre of the discussion.

The proposal reflects the sector's preference for a phased approach rather than an immediate reduction in selling fees. Further details on the transition framework were not provided.