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SBI Life emerges best placed private insurer under new IRDAI rules
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CNBC TV18•05-10-2026, 15:58
SBI Life emerges best placed private insurer under new IRDAI rules
- •SBI Life Insurance Company is viewed as the top-positioned private insurer because it faces no growth, commission, or EOM pressures from the proposed IRDAI regulations.
- •HDFC Life Insurance Company and Max Life could experience greater pressure from proposed expenses of management limits, though their valuations may remain attractive.
- •The regulatory proposals are expected to impact distributors more heavily than insurers, potentially leading to stronger pushback from the distribution side.
- •Bank-led sales in life insurance are unlikely to suffer major disruptions since commissions on ULIPs and non-par policies are not materially affected.
- •General insurance faces a bigger growth concern due to substantial proposed commission cuts that could hinder sales momentum for distributors.
Key Questions Answered
SBI Life Insurance Company emerges as the preferred private life insurer because it is largely insulated from the proposed changes, having no expenses of management (EOM) pressures, growth disruption, or commission disruption.
HDFC Life and Max Life could face greater pressure because they will need to find ways to work around the proposed expenses of management (EOM) bands.
ICICI Prudential Life Insurance Company and, to a smaller extent, HDFC Life have exposure to the credit-life business, which could see a significant volume reduction from 2027-28 (FY28).
