<h1>Insurance sector faces structural stress from high cost distribution, prompting calls for cost rationalisation and tech driven distribution adoption now.</h1> The Reserve Bank flags a persistent high expense structure in the insurance sector where premium growth is driven by high cost distribution and front loaded acquisition costs rather than operating efficiency, leading to weakened profitability buffers and potential cyclical vulnerabilities; it recommends cost rationalisation, realignment of intermediary incentives toward persistency and policyholder value, broader technology enabled low cost distribution, and supportive regulatory measures such as risk based capital, enhanced disclosures, and stronger market conduct standards to reduce expense intensity and improve consumer value.