Policy · Updated 9 Oct, 01:04 pm IST
IRDAI may introduce insurance commission caps from January or April 2027
Why it matters for readers: It matters because the regulator believes commissions have grown too fast and wants to make insurance cheaper and less risky to sell.
- IRDAI is weighing January 1 or April 1, 2027 as implementation dates for proposed distribution reforms including commission caps.1
- The proposals would introduce product-wise commission caps and tighter limits on insurers’ overall expenses to curb rising distribution costs.1
- Industry bodies and distributors such as PB Fintech and Turtlemint face potential revenue losses, with IBAI warning of a 60–70% hit to broking sector revenues.1
- IRDAI says commissions have risen faster than premiums since 2023 rule relaxations and wants caps to take effect sooner to avoid rushed sales and mis-selling.1
- Stakeholders have until October 25 to submit feedback before the regulator reviews responses and issues draft regulations for further consultation.1
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