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IRDAI's New Proposal: Brokerages Predict Impact on Shares, PB Fintech Faces Pressure.
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CNBC Awaaz•24-09-2026, 09:52
IRDAI's New Proposal: Brokerages Predict Impact on Shares, PB Fintech Faces Pressure.
- •IRDAI released a consultation paper on insurance distribution costs, prompting brokerages to assess the impact on insurance companies and related shares.
- •The proposals aim to reduce distribution costs, change commission structures, and make insurance more affordable for policyholders.
- •Brokerage assessments indicate PB Fintech is among the most affected, while LIC and SBI Life are expected to be relatively less impacted.
- •Bernstein, Macquarie, HSBC, and Jefferies reports suggest significant pressure on PB Fintech, HDFC Life, Max Financial, and some banks due to proposed commission cuts.
- •The proposed EOM limits could affect insurers, brokers, and lenders, with SBI Life, Star Health, and ICICI General Insurance potentially benefiting from increased market share.
Key Questions Answered
The main focus of the proposal released by IRDAI on September 23, 2026, titled 'Recalibrating Economics of Insurance Distribution', is to reduce distribution costs, modify the commission structure, and make insurance policies more affordable for policyholders.
Brokerage assessments indicate that PB Fintech and Turtlemint will be the most affected by the proposed commission limits. Among banks, institutions like Axis Bank and HDFC Bank, which have a higher reliance on insurance distribution income, are expected to experience more impact than others.
According to Jefferies, the proposed insurance commission limits are scheduled to be implemented starting from FY2028, and the draft is currently open for public feedback and industry review.
