IRDAI has warned private general and health insurers about rising commission payouts in health and motor insurance. The regulator’s concerns stem from the fact that despite the relaxation of commission payout limits in April 2023, the expected reduction in insurance premiums has not materialised. According to IRDAI’s 2024 Annual Report, private insurers spent Rs 16,578 crore as commission to Motor Insurance Service Providers (MISPs) during FY24 compared to Rs 4,890 core in FY23, a surge of 239 percent. On the other hand, public sector insurance companies reported a 31.59 percent rise in commission expenses at Rs 3,000 crore in FY24 as against Rs 2,355 crore in Fiscal Year 2013-14. If insurers do not take substantial steps, IRDAi has indicated that it will revisit the guidelines in 2026, potentially removing the expenses of management (EoM) cap entirely and instead imposing stricter limits on commission payout for individual business segments.