Insurance commission revamp to hit insurtech firms
The Insurance Regulatory and Development Authority of India (IRDAI) is considering implementing commission caps in the insurance distribution industry, which could significantly impact insurtech firms like PB Fintech, Turtlemint, and InsuranceDekho. Banks and non-banking finance companies (NBFCs) may also face pressure on their insurance distribution income, as the proposed caps would lower commission limits for distributors selling products from multiple insurers.
The largest cuts are expected in health, term, and motor insurance. Shares of PB Fintech and Turtlemint have already dropped following the news of the proposed changes. While the IRDAI's proposals are still under consultation, PB Fintech's founder and group chairman has stated that if implemented, the commissions would pressure the company's top line.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
