Irdai's draft distribution norms could put insurance volumes at risk

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Proposed commission caps, tighter expense limits and restrictions on loan bundling could disrupt distribution channels and lead to volume declines in the short term

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Irdai proposes a redesign of insurance distribution and cost structures | Representative Image

Devangshu Datta New Delhi

5 min read

Last Updated :

Sep 24 2026 | 8:32 PM

IST

The Irdai's consultation paper, "Recalibrating Economics of Insurance Distribution", released this month, is the most significant proposed overhaul of distribution regulation since the 2023 Expenses of Management (EoM) reforms. The draft has sent shock waves through stakeholders.

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