IRDAI Considers Capping Insurance Commissions Starting Early 2027

9 Oct 2026, 1:04 pm · 4h ago · 1 min read · Inc42

The Insurance Regulatory and Development Authority of India (IRDAI) is considering implementing proposed insurance commission caps as early as January 1 or April 1, 2027. The regulatory reforms aim to curb distribution costs via product-wise commission caps and tighter overall insurer expense limits. The proposal follows observations that intermediary commissions outpaced premium growth since 2023 without increasing coverage. The framework directly impacts listed insurance distribution platforms like Policybazaar parent PB Fintech and Turtlemint, whose shares dropped over 47% post-announcement. Stakeholders have until October 25 to submit feedback.