IRDAI Proposed Reforms Trigger Sharp Fall in Insurance Stocks
· Business · LiveMint, Economic Times, India Today
Insurance stocks plummeted on September 24 after the Insurance Regulatory and Development Authority of India proposed sweeping distribution reforms. TurtleMint led the losses, hitting its 20 percent lower circuit at ₹109.10, while PB Fintech touched its 10 percent lower circuit at ₹1,701.00. Major insurers including HDFC Life, SBI Life, ICICI Prudential Life, LIC, and ICICI Lombard also recorded sharp declines. The proposed regulatory framework seeks to curb mis-selling by tightening Expense of Management limits and aligning commissions with product complexity. Under the new rules, commissions for bank-distributed products and mandatory covers such as third-party motor insurance would face strict caps.
Why it matters
The proposed regulations directly impact insurance distributors, banks, and listed insurers by restructuring commission payouts and management expense caps, which could reshape distribution models across the sector.
Read the original report — LiveMint
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