IRDAI proposes reforms to insurance distribution economics
29 September 2026 · Insurance Regulatory and Development Authority of India
IRDAI's proposed reforms seek to change the economics of insurance distribution, including commission structures, expense management, transparency and digital distribution. The proposals are still under consultation and are not final regulations
IRDAI proposes reforms to insurance distribution economics
The Insurance Regulatory and Development Authority of India (IRDAI) is considering reforms to the economics and regulatory framework of insurance distribution.
The consultation proposals, titled “Recalibrating Economics of Insurance Distribution,” cover areas including distribution structures, commissions, expenses, market conduct, transparency and technology-enabled insurance distribution.
The proposals have generated discussion among insurance intermediaries and industry participants. The Insurance Brokers Association of India is also expected to engage with IRDAI regarding the proposed distribution framework.
Important: These are proposals/consultation measures, not final regulations. Their final form may change following the consultation process.
Key exam point:
The proposal is associated with insurance distribution economics, including commissions and expenses of management.
Related official document
Recalibrating Economics of Insurance Distribution — Consultation Paper