The Insurance Regulatory and Development Authority (IRDA) has notified Insurance Regulatory and Development Authority (Linked Insurance Products) Regulations, 2013 wherein, Regulation (9) prescribes levels of commission under the linked insurance products. Similarly Commission norms in respect of non linked products have been prescribed in Regulation (21) of Insurance Regulatory and Development Authority (Non-Linked Insurance Products) Regulations, 2013.

As informed by the IRDA, the position regarding first year premium of the life insurance business in the last three years, is as follows:-

The recent negative growth may be attributed to factors rooted in the economic environment.

This was stated by Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

Commission regulation for insurance agents sets prescribed rates for linked and non linked products, impacting first year premium trends. Commission rates for insurance agents are prescribed by IRDA: Regulation (9) of the Linked Insurance Products Regulations, 2013 sets commission levels for linked products and Regulation (21) of the Non Linked Insurance Products Regulations, 2013 prescribes commission norms for non linked products. The document also reports three year first year premium trends showing recent negative growth attributed to economic conditions.