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Insurance Stocks Plunge After IRDAI Overhaul; Caplin Point Hits Record High
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CNBC TV18•24-09-2026, 10:10
Insurance Stocks Plunge After IRDAI Overhaul; Caplin Point Hits Record High
- •Insurance and insurance-linked stocks experienced a significant fall at market open following IRDAI's proposed changes to insurance distribution economics.
- •PB Fintech shares dropped over 20% due to new lower Expense of Management caps and tighter commission structures, with brokerages flagging it as highly exposed.
- •Max Financial Services and HDFC Life Insurance Company also saw shares fall by up to 10% and 8% respectively, impacted by the proposed IRDAI reforms.
- •L&T Finance shares declined up to 9% as tighter commission caps are expected to weigh on bancassurance fees for banks and NBFCs.
- •In contrast, Caplin Point shares surged over 6% at market open, reaching an all-time high amidst the broader market slump for insurance stocks.
Key Questions Answered
The IRDAI proposed sweeping changes to insurance distribution economics, including lower Expense of Management (EoM) caps set at 12.5% of Gross Direct Premium Income (GDPI) for life insurers and 20% for general insurers over five years, alongside tighter commission structures and reintroducing hard commission caps.
Insurance and insurance-linked stocks slumped at market open on Thursday, September 25, led by a drop of over 20% for PB Fintech shares, up to 10% for Max Financial Services, up to 9% for L&T Finance, over 8% for HDFC Life, and up to 8% for Canara HSBC Life Insurance Company.
Caplin Point emerged among the few prominent gainers at market open, hitting an all-time high of ₹2,990 with its shares rising over 6%.
