IRDAI Proposes Commission Caps on Insurance Distributors; Policybazaar Stock Crashes 36%

India's insurance regulator IRDAI released a consultation paper on September 23 seeking to reintroduce commission caps: expenses of management would be capped at 12.5% of premium for life insurers and 20% for general insurers, down from 30%. PB Fintech (Policybazaar) shares fell 35.98% to ₹1,210 and Turtlemint hit its 20% lower circuit; Jefferies estimates new health policy commissions could drop 33–50%.

• IRDAI proposes capping expenses at 12.5% of premium for life and 20% for general insurers, down from 30%
• Distributor payouts rose 125% in FY23–FY25 while new business premiums grew just 28%
• PB Fintech shares fell 35.98% to ₹1,210; Turtlemint hit its 20% lower circuit
• Jefferies: Policybazaar commissions on new health policies could drop 33–50%