Insurance Mis-selling: Are you losing money on the wrong policy? | Pocket Money
This article discusses the prevalence of life insurance mis-selling in India, highlighting high commission rates and low policy persistency. It examines proposed reforms by the IRDAI aimed at protecting policyholders from financial exploitation.
Why it matters
Widespread mis-selling of financial products leads to significant personal wealth destruction and erodes public trust in the insurance sector.
Insurance Mis-selling: Are you losing money on the wrong policy? | Pocket Money left https://th-i.thgim.com/public/incoming/ceonm8/article71615839.ece/alternates/FREE_1200/Black%20and%20Red%20Bold%20Creative%20Scribble%20Artist%20Logo%206.png https://traffic.megaphone.fm/THGU1165269480.mp3 megaphone In this episode, we examine the scale of life insurance mis-selling in India, the staggering commissions and low persistency rates, and whether IRDAI’s proposed reforms can protect policyholders. Mis-selling of financial products is rampant in India. The single biggest mis-sold product is life insurance. People get ripped off by bank relationship managers (RMs), and by insurance agents. The Insurance Regulatory and Development Authority of India (IRDAI) has for long been a spectator. But last month it released a consultation paper proposing some sectoral reforms. We will discuss the IRDAI proposals in this episode. But before that, three datapoints that exemplify the sheer scale of insurance mis-selling.
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