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Irdai Extends Deadline for Insurance Distribution Reforms
25 Oct
Summary
- Consultation deadline extended to October 31, 2026.
- Over 650 comments received on proposed insurance reforms.
- Reforms include hard caps on commissions and lower expense limits.
The Insurance Regulatory and Development Authority of India (Irdai) has extended the deadline for public feedback on its proposed insurance distribution reforms. The new submission date is October 31, 2026, following an encouraging response with over 650 comments received. This extension aims to ensure wider participation in the review process.
The consultation paper, titled 'Recalibrating Economics of Insurance Distribution,' proposes significant changes. Key among these are the reintroduction of hard caps on insurance commissions, varying by segment, line of business, distribution channel, product complexity, and sales effort. The proposals also include lowering expense of management limits for insurers.
Irdai Chairman Ajay Seth highlighted that the consultation paper was issued to provide stakeholders an additional opportunity for feedback before draft regulations are finalized. He stated the regulator is open to all suggestions, ensuring an orderly transition and refinement of the proposed reforms.
