Bangladesh to go after excessive insurance commissioningMarch 1 2018 by InsuranceAsia News Staff
Bangladesh’s insurance regulator, the Insurance Development and Regulatory Authority (IDRA), has vowed to intensify a campaign against excessive commissioning by insurance companies in the country.
IDRA member Gokul Chand Das said the regulator will soon serve a notice to the insurance companies as a last reminder against excessive commissioning.
If an insurer does not comply with the new rule, IDRA will take regulatory action, Das said.
Under the current rules, general insurance companies are allowed to spend 15% of their premium income to capture business, but many are offering as much as 60%.
The excessive commissioning, according to industry experts, creates unhealthy competition.
Das said IDRA will find a way this year to curtail the practice, which puts insurers at risk.
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