Exclusive: IRDAI consultation paper likely soon; banks may face big cuts

The Insurance Regulatory and Development Authority of India (IRDAI) is likely to issue a consultation paper on insurance commissions and distribution soon, sources told CNBC-TV18.

The consultation paper is expected to be directional in nature and is unlikely to specify limits on commissions or Expenses of Management (EoM), sources said.

According to sources, specific commission and expense limits are likely to be discussed with the industry by the end of the current calendar year, with the proposed changes expected to be implemented from April 2027.

Banks are likely to face significant cuts in commissions under the proposed framework, sources said.

Individual agents may see the smallest reduction in commissions, while group life insurance products could face a larger cut.

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Commissions on individual life insurance products are also likely to see a smaller reduction, according to sources.

Credit life insurance products may face significant commission cuts under the proposed changes, sources said.

IRDAI has not yet responded to CNBC-TV18’s queries.

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