Chennai: Shriram General Insurance Company (SGIC), a leading insurance company in India, welcomes the IRDAI’s (Insurance Regulatory and Development Authority of India) move to remove the cap on commission payments to agents, aggregators and brokers.
Under the IRDAI (Payment of Commission) Regulations, 2023, notified on 26th March 2023, the insurance regulator has replaced the earlier cap on commission payments with an overall cap on expenses of management of insurers. The move is widely believed to provide more flexibility to insurers in managing their costs.
Anil Kumar Aggarwal, MD and CEO at Shriram General Insurance, echoed the industry’s sentiments, “The regulatory change is an eagerly awaited and path-breaking reform by IRDAI. The removal of the cap on commission payments will positively impact the insurance sector. It will facilitate product innovation development of new product distribution models and lead to more customer-centric operations. It will also increase insurance penetration and provide flexibility to insurers in managing their expenses. Overall, it will smoothen adherence to compliance norms.”
About Shriram General Insurance Company
Shriram General Insurance Company (SGIC) is a joint venture between Shriram Capital Private Ltd., the holding company for the financial services business of the Shriram Group, and Sanlam Ltd, a leading financial services group in South Africa. Shriram General Insurance is a Jaipur-based, 14-year-old Non-Life Insurance company licensed with the IRDAI (Insurance Regulatory and Development Authority of India). The company offers a complete range of 206 general insurance products, ranging from motor, travel, home and personal accidents in the retail space and customized products like fire, engineering and marine Insurance in the corporate area. It also offers a range of products for rural India. Shriram General Insurance manages assets worth INR 117 billion across over 46.81 lacs live policies. The company has 228 branches in 25 states and an employee strength of 3,553 across India as of December 2022. SGIC has an overseas subsidiary named SGI Philippines General Insurance Co. Inc that offers General Insurance Products in the Philippines.
About Shriram Group
Shriram Group is India’s leading financial conglomerate with a dominant presence in commercial vehicle (CV) financing, retail financing, chit fund, equipment financing, housing finance, life insurance, general Insurance, stockbroking, distribution of financial products, mutual fund, and wealth advisory services. The Group focuses on serving the underserved and is driven by its Financial Inclusion agenda of bringing finance to low-income families and small businesses. Shriram Capital Private Limited is the holding company for the Financial Services (Shriram Finance Limited – earlier known as Shriram Transport Finance Co. Ltd.) and Insurance entities (Shriram General Insurance Company Limited & Shriram Life Insurance Company Limited). Post-merger of Shriram City Union Finance Limited into Shriram Transport Finance Co. Ltd., Shriram Housing Finance Limited has become subsidiary of Shriram Finance Limited. Shriram Group together has an overall customer base above 23.45 million and around 1,08,000 employees across 4,100 branches. Net profit of INR 49 billion with Assets under Management (AUM) of over INR 2.35 trillion as of December 2022.