This is actually not possible as per the current laws. The agency commissions are capped by IRDAI. In fact, the new regulations state that those who have expense ratios of <30% (including commission), will be free to set their own commissions and all other have to abide by the caps and will face other penalties as well. The initial agency force was built via a massive regulatory arbitrage available to Star and this new policy effectively means that competition becomes impossible. Even if hypothetically these regulations are lifted, Star already has the advantage of distribution, scale and a low cost structure. Thus to compete with Star, a new entrant would have offer higher commissions to agents, have a higher fixed cost structure compared to Star and offer the same or lower policy pricing compared to Star, aka incur massive underwriting losses while scaling up the business. This becomes a significant entry barrier
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