- The Insurance Regulatory and Development Authority of India extended feedback deadline to October 31
- Over 650 comments have been received on the consultation paper so far
- The extension aims to allow wider participation from stakeholders and the public
The Insurance Regulatory and Development Authority of India has extended the deadline for feedback on its consultation paper on distribution reforms to October 31.
In a release on October 24, IRDAI said, "The consultation has received an encouraging response, with over 650 comments received so far. In view of the significant interest and to facilitate wider participation, the last date for submission of comments has been extended till 31st October 2026, providing additional time to stakeholders and members of the public to submit their feedback and suggestions."
This development was first reported exclusively by NDTV Profit, stating that the regulator is open to considering stakeholder requests for an extension, and may grant one selectively to market intermediaries.
IRDAI had earlier set a deadline of October 25 for feedback on consultation paper. The proposals, set out in IRDAI's Sept. 23 consultation paper ‘Recalibrating Economics of Insurance Distribution', seek to overhaul how insurance is sold in India. They include product- and channel-specific caps on distributor commissions, a phased cut in insurers' expense of management limits, and a simpler three-tier distribution structure. The paper also proposes a clawback mechanism in mis-selling cases.
After the consulation paper was released, the Insurance Brokers Association of India had sought an extension and met the IRDAI leadership to raise its concerns, according to people aware of the development. These included the impact on brokers' livelihoods, curbs on distribution, and expense management. Brokers are looking for sustainable compensation under the new distribution framework. They have warned that lower commissions could weaken distribution incentives in some segments. Additionally, Bancassurance players have raised similar worries. According to them, the proposed commission caps may not reflect the costs of servicing and compliance.
How To Submit Feedback?
Feedback may be submitted through any of the following modes:
1. Through the web portal: https://iib.gov.in/dr
2. Through the excel template: The template available at https://iib.gov.in/dr may be completed and uploaded on the portal.
3. Through Email: The completed Excel template may be emailed to drfeedback@iib.gov.in, with the subject line “Reforms for Recalibrating Economics of Insurance Distribution”.
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