How to actually reform insurance

A few days ago, IRDAI, India's insurance regulator, published a document that was an 'exposure draft' of new rules on expenses and commission that it is proposing. This draft proposed a 20 per cent limit on commissions for general insurance companies, down from the 35 per cent now. The regulator also proposed life insurers whose expenses were under 70 of the maximum permissible limit to set their own commission rates. For those who are above this threshold, the highest commission allowed is proposed to be reduced sharply from the current 40 per cent peak. There's also a proposal for commissions to be paid in the 5th, 10th, and 15th years of the policy tenure. This could, in theory, increase the incentive for agents to recommend and sell policies that have a chance of be