Large gaps exist in life insurance coverage in India. The paper examines this issue through a supply-side lens by examining the two key features—the distinction between the agent and the broker model and the alignment of incentive structures with product life-cycle servicing. Regulations rely on disclosures to clarify the agent–broker distinction to customers, but conflicts of interest may prevent intermediaries from making these disclosures. Without such transparency, commission-driven sales can result in mis-selling, irrespective of the intermediary being a broker or an agent. The Insurance Regulatory and Development Authority of India has sought to address the issue of mis-selling through the product disclosure and suitability guidelines. However, these measures are inadequate and might not be effective.
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