Insurance commission: IRDAI extends time for feedback to October 31

MUMBAI: The Insurance Regulatory and Development Authority of India (IRDAI) extended the deadline for feedback on its consultation paper on insurance distribution commissions to October 31 from October 25, after receiving more than 650 comments from stakeholders.

The consultation paper was released on September 23 and proposes changes to commission structures and distribution practices to improve efficiency and policyholder value.

"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 regulator said.


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The regulator is engaging with different stakeholder groups and has not reached a conclusion on the proposals, IRDAI chairman Ajay Seth had said recently. The objective is to move towards a more efficient regime without disrupting existing businesses or livelihoods. Some stakeholders have sought a longer transition period, while others have raised concerns about low-ticket policies, Seth had said. Larger insurers, smaller companies and new entrants have different concerns, as do various categories of insurance distributors.

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The regulator has sought comments backed by business and economic reasoning, particularly on how the proposed changes would benefit policyholders. IRDAI said every suggestion would be carefully considered before it decides on the way forward. Insurance brokers have raised concerns that the proposed changes could hurt distribution businesses, reduce revenues by 60-70% and lead to job losses. Seth has also said the reforms could create new business opportunities within and beyond the insurance sector, depending on how the transition is structured.