Insurance #life insurance#misselling
Rise in Early Exits from Life Policies Points to Misselling, RBI Report Warns
RBI's Financial Stability Report has flagged a rise in early exits from life insurance policies, with surrenders and withdrawals now exceeding maturity pay-outs, signalling policyholder dissatisfaction and the risk of mis-selling. The report also noted surging distribution costs, especially among private insurers, raising the risk of acquisition-cost-driven mis-selling. Irdai chairman Ajay Seth said the regulator is working on distribution reforms to address product suitability.
Jul 6, 2026 1 source
