IRDAI Gives Industry More Time to Comment on Insurance Distribution Overhaul
IRDAI has extended the deadline for feedback on insurance distribution reforms as the regulator seeks stakeholder input on proposed changes.
IRDAI has extended the feedback window on insurance distribution reforms, giving stakeholders more time to submit their views. AI-generated - image.
NEW DELHI – The Insurance Regulatory and Development Authority of India (IRDAI) has extended the last date for submitting comments on its consultation paper on insurance distribution reforms from October 25 to October 31, 2026.
The extension applies to the consultation paper titled “Recalibrating Economics of Insurance Distribution”, which the regulator released on September 23, 2026.
IRDAI: What the consultation paper covers
The paper has two parts. Part 1 sets out the proposed reforms, while Part 2 presents IRDAI’s analysis of distribution costs and commission structures across the industry.
The draft proposes tighter Expense of Management (EoM) limits for insurers, phased over five years, along with sharper controls on commissions and measures aimed at curbing mis-selling. It also proposes product- and channel-specific caps on distributor commissions. The framework is anchored in the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which came into effect on February 5, 2026.
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IRDAI: Industry had sought more time
The Insurance Brokers Association of India (IBAI), which represents around 750 members, had sought an extension of the comment period to late December. The association met IRDAI leadership earlier this month to raise concerns including the impact on brokers’ livelihoods, curbs on distribution and expense management.
Reports on October 22 had said the regulator was considering requests from industry participants for more time.
IRDAI: What happens next
The reforms were earlier slated to come into force from January 1, 2027. IRDAI Chairman Ajay Seth has said the regulator is considering January 1 or April 1, 2027 as the effective date, with the final date to be decided after consultations with the industry. He has also said the authority is open to modifying aspects of the framework based on stakeholder feedback, including the possibility of phasing in commission-related reforms.
After the comment period closes, draft regulations are expected to undergo another round of feedback.
Separately, IRDAI had earlier extended the deadline for feedback on its Public Insurance Registry consultation paper from September 30 to October 17, 2026.
