Insurance commission: NBFCs seek 5-year transition period to reduce selling fee
IRDAI moved lower.
· ET Stocks
The industry body of NBFCs has told the Insurance Regulatory and Development Authority of India (IRDAI) that the proposed commission caps of 2% for credit life and 5% for credit health insurance would make credit-linked insurance distribution unviable, given distribution costs are about 32% of the premium.
The analysis
IRDAI reported movement of 2%, 5% and 32%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Why it matters
- With IRDAI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- Sectors in the story: Insurance.
Insurance
1M -5.4% · 3M -13.4%
Sector moves are the average of the stocks we track in each sector.
In this story
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