IRDAI Takes An Axe To Commissions, Unveils Expense Cuts For Insurers: Key Winners & Losers
https://ift.tt/QupFDmx The Insurance Regulatory and Development Authority of India (IRDAI) has issued a sweeping two-part consultation paper on distribution regulations and expense of management (EoM) caps, sending shockwaves across the financial services landscape. The proposals seek to clamp down on inflated distributor payouts, reduce friction costs for end-policyholders, and transition the industry from an aggressive "push" model to an effort-based and pull-oriented distribution ecosystem. Global brokerage assessments from Jefferies, Macquarie, Bernstein, and HSBC indicate the proposed measures will deliver a significant near-term hit to distributor unit economics — most notably for PB Fintech (Policybazaar) — while leaving low-cost, agency-backed underwriters like Life Insurance Corporation of India (LIC) and SBI Life relatively insulated. ALSO READ: IRDAI Eyes 5-Year Glide Path To Cut EoM Caps To 20% For General Insurers, 12.5% For Life Insurers The Proposed Regu...