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IRDAI Proposals Threaten 70 Percent Revenue Cut And 10 Lakh Job Losses
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News18•06-10-2026, 17:15
IRDAI Proposals Threaten 70 Percent Revenue Cut And 10 Lakh Job Losses
- •The Insurance Brokers Association of India warned that IRDAI's proposed overhaul of distribution practices could cause up to a 70 percent revenue drop for intermediaries.
- •Proposals outlined in the consultation paper titled Recalibrating Economics of Insurance Distribution may trigger 10 lakh job losses across intermediaries and insurance companies.
- •IBAI director Pavanjit Singh Dhingra stated the industry deadline for feedback was too tight and urged an extension until December.
- •IRDAI Chief Ajay Seth defended the proposed changes, highlighting excessively high commissions currently earned by insurers.
- •IBAI plans to meet the regulator to voice concerns and request a relook at proposals, including the removal of distinctions between agents and brokers.
Key Questions Answered
According to the Insurance Brokers Association of India (IBAI), the proposed overhaul of insurance distribution practices could cause intermediary revenues to drop by up to 70 percent and result in 10 million job losses across the sector.
The Insurance Regulatory and Development Authority of India (IRDAI) released the consultation paper titled 'Recalibrating Economics of Insurance Distribution' on September 23.
IRDAI Chief Ajay Seth defended the proposed reforms by citing excessively high commission levels earned by intermediaries and insurers, noting that distributor remuneration has grown much faster than underlying business volumes.
