New Delhi, March 4 -- The Insurance Regulatory and Development Authority of India (IRDAI) has warned general and health insurance companies against rising commission payouts, which have led to higher premiums for insurance holders, reported CNBC-TV 18, citing sources on Tuesday. The regulator has also urged firms to contain commissions to avoid strict actions in the future.

Life and general insurance companies pay commissions to agents, distributor banks, and other intermediaries for soliciting and procuring insurance policies.

In 2023, IRDAI removed limits on the payment of commissions to insurance intermediaries. The regulator made it mandatory for insurance companies to keep commissions below their overall Expenses of Management (EoM...