INDIA MARKET LENS
Markets◆ Mixed

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.

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.

  • With IRDAI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
  • 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.

Insurance