IRDAI Extends Feedback Deadline on Insurance Reforms to October 31
The Insurance Regulatory and Development Authority of India has extended the deadline for public feedback on insurance distribution reforms to October 31, 2026.
IRDAI has received over 650 comments on its consultation paper.
The feedback deadline was initially set for October 25 but has been extended to encourage broader participation.
Proposed reforms include changes to commission structures and a new distribution framework.
The Insurance Regulatory and Development Authority of India (IRDAI) has officially extended the deadline for feedback on its consultation paper regarding insurance distribution reforms to October 31, 2026. This decision was announced in a release on October 24, highlighting the encouraging response from stakeholders, with over 650 comments already submitted.
Initially, the deadline for feedback was set for October 25. However, due to significant interest from various stakeholders, including insurance brokers and market intermediaries, IRDAI opted to extend the deadline. The authority aims to facilitate a more comprehensive discussion on the proposed reforms, which are intended to reshape the insurance distribution landscape in India.
The consultation paper, released on September 23, outlines several key proposals aimed at overhauling how insurance products are marketed and sold. Among these are specific caps on distributor commissions, a phased reduction in the expense of management limits for insurers, and the introduction of a simplified three-tier distribution structure. Additionally, the paper suggests implementing a clawback mechanism to address cases of mis-selling.
The response from the Insurance Brokers Association of India has been particularly vocal, as they raised concerns regarding the potential impact of these reforms on their livelihoods. They argue that the proposed commission caps may not adequately reflect the costs associated with servicing clients and compliance requirements. Similar concerns have been echoed by Bancassurance players, who fear that the new commission structures could undermine distribution incentives in certain market segments.
Stakeholders wishing to submit feedback can do so through various channels, including an online portal, an Excel template available for download, or via email. This extension provides an opportunity for a wider range of participants to contribute their insights and suggestions, ensuring that the reforms consider diverse perspectives before finalization.
