IRDA is just like any regulatory authority. Some banks charge ridiculous fees for basic services and RBI cant do a thing. Likewise SEBI with Mutual Funds. Insurance customers today are more aware and infromed than those of yesteryears. ULIPS are a blessing though the charges are high because of the minimum term of payments. Look at term policies (pure life cover) or endowment policies (moneyback), they provide lower retruns and have longer paying terms. Granted that they encourage saving but for the people of today such long paying terms ,of 15,18 to 20 years, are not enticing options. Yes the comissions are high given to agents.Yes some agents are only interested in sales and commissions alone and yes the allocation of the investment with some Insurance copmanies is high. But consider what benefits you would recieve on Unit Linked insurance plans (ulips)invested in the market for 10 years!! Every 3 years (@30 growth on average) your initial year investment amount doubles! I think the main idea should be to have a forum or platform where the data on growth of the investment is easily attainable. That way investors can track their investment and Insurance companies are compelled to peform, creating healthy competition and lower costs. Investors can then simply choose who is the better business to invest with. At the end of the day the best return on investment wins!
