IRDAI's commission overhaul likely from April 2027 after due consultations: Nilesh Sathe
Economic Times 1 hr ago·11 Aug 2026, 2:47 am
The Insurance Regulatory and Development Authority of India (IRDAI) is planning a major overhaul of how insurance commissions are paid out. This change is expected to be implemented in phases, with the first significant shift likely to begin in April 2027. The regulator is currently in the process of finalizing the rules after extensive consultations with industry stakeholders.
This development is important for investors as it signals a shift in the business models of insurance companies. The new structure is expected to move away from high upfront commissions and towards a system with more trail-based payouts. This could impact the profitability and operational strategies of insurers and their distribution partners, including banks and corporate agents.
Investors should monitor the finalization of these regulations. The timeline suggests a long wait, but the eventual rules will define the competitive landscape for insurance distribution in India for years to come.
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