IRDAI's new distribution paper pushes insurance industry from volume to value, says PwC's Amit Roy
CNBC-TV18 1 hr ago·25 Sept 2026, 5:58 am
The Insurance Regulatory and Development Authority of India (IRDAI) has released a draft paper aimed at changing how insurance products are sold. The new guidelines propose shifting the industry away from a 'volume-based' model, which rewards agents for selling the most policies, toward a 'value-based' model. This would focus more on the quality of advice and the actual needs of the customer.
This shift is significant for investors as it could force insurers to rethink their distribution strategies. General insurers are expected to face the steepest cuts in commissions, which might impact their short-term profitability. For Policybazaar, the largest online insurance aggregator, the move is a double-edged sword. While it could help clean up the market and improve long-term sustainability, it also puts pressure on the company to prove its value beyond just processing transactions.
Investors should watch for the final version of these rules. The experts suggest the final regulations may settle at a middle ground, balancing the need for better service with the practicalities of agent remuneration. How Policybazaar adapts its commission structures and underwriting ambitions will be key to its performance in this evolving landscape.
Affected stocks
Bullish1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns PB Fintech (POLICYBZR).
- Category: Sector.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development for PB Fintech and could move the stock. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
