Coverfox MD Sanjib Jha Questions IRDAI’s Insurance Reset, Flags Risk To Rural Penetration
by Anjali Jain · Inc42SUMMARY
- Coverfox founder and MD Sanjib Jha has challenged IRDAI’s proposed insurance distribution overhaul, particularly the proposed 2% remuneration cap on loan-linked protection products, while brokers and insurers have also sought changes to the framework
- Industry stakeholders warn that lower payouts could make last-mile insurance distribution less viable, particularly in rural and Tier II and III markets, potentially affecting agents, POSPs and jobs even as India seeks to expand insurance penetration
- Jha has proposed a “Priority Sector Insurance” framework, modelled on priority-sector lending, to expand coverage among underserved customers based on geography, income and product.