The Insurance Regulatory and Development Authority of India (IRDAI has extended the deadline for submitting feedback on its consultation paper on insurance distribution reforms to October 31, 2026.
The regulator had earlier set October 25, 2026, as the deadline for stakeholders to submit their comments on the proposed changes.
“The consultation has received an encouraging response, with over 650 comments received so far. In view of the significant interest and to facilitate wider participation, the last date for submission of comments has been extended till 31st October 2026, providing additional time to stakeholders and members of the public to submit their feedback and suggestions,” the official release read.
The Insurance Brokers Association of India (IBAI) had previously raised a request for an extension of the deadline until the end of December to submit its recommendations, citing the need of more time to examine the proposals.
IRDAI released a two-part consultation paper on the proposed distribution reforms, titled ‘Recalibrating Economics of Insurance Distribution’ on September 23, inviting comments and suggestions from the public, policyholders, insurers, intermediaries and other stakeholders.
What changes has IRDAI proposed?
The insurance regulator’s consultation paper outlines a series of reforms to streamline insurance distribution in India and improve how policies are sold to customers. The proposals also aim to simplify the distribution framework while bringing greater oversight to commissions and selling practices.
Key proposals include tighter expenses of management (EoM) limits, a return to product-level commission caps, a ban on compulsory bundling of insurance with loans by banks and non-banking financial companies (NBFCs), and changes to motor insurance distribution. Expenses of management are the costs an insurance company incurs to run the business.
The draft reforms focus on areas where the regulator believes there are unnecessary distribution costs. For example, there are significantly high commissions in motor insurance, even though some parts are mandatory.
The proposed caps vary significantly by product. With individual life insurance, for instance, the draft sets first-year commission limits for distribution entities between 5% and 20%, depending on the premium payment term, while agent limits range from 6.25% to 25%.
How can a stakeholder submit their feedback?
Stakeholders can submit their feedback on the proposed reforms through any of the following modes
— Web portal: Submit feedback directly at https://iib.gov.in/d
— Excel template: Download the template from the same portal, fill it in and upload the completed file.
— Email: Send the completed excel template to drfeedback@iib.gov.in, with the subject line “Reforms for Recalibrating Economics of Insurance Distribution”.
This sweeping overhaul of insurance distribution that could put pressure on insurers and distributors to reduce distribution costs and commissions, which is why IBAI warned that it could threaten intermediaries’ viability, jobs and customer servicing, Mint reported earlier.
