Page 2 - Latest Updates on IRDAI
Risk sharing
Insurance copayment will not address deeper problems
 "Risk sharing")
RBI to firm up views on Irdai's proposed insurance commission overhaul
Governor Sanjay Malhotra says the RBI will submit comments on Irdai's draft commission framework, which proposes product-level caps and lower management expense limits
 "RBI to firm up views on Irdai's proposed insurance commission overhaul")
Irdai distribution overhaul could hit brokers' revenue by 70%: IBAI
Insurance brokers have sought a deeper assessment of Irdai's proposed distribution reforms, warning of a 60-70 per cent revenue impact and around 1 million jobs at risk
 "Irdai distribution overhaul could hit brokers' revenue by 70%: IBAI")
Insurance brokers oppose Irdai's proposed reforms, warn of job losses
The Insurance Regulatory and Development Authority of India proposed the rules as part of a discussion paper in late September and invited stakeholders to submit feedback by October 25
 "Insurance brokers oppose Irdai's proposed reforms, warn of job losses")
Irdai proposal may put 1 million livelihoods at risk: Brokers' body
The brokers' body said proposed commission caps and lower expense limits could hurt employment and competition while reviving unethical business practices
Irdai's distribution reforms may constrain smaller insurers: Acko CEO
ACKO CEO Animesh Das said uniform EoM limits across companies could restrict growth opportunities for smaller and newer insurers
 "Irdai's distribution reforms may constrain smaller insurers: Acko CEO")
Public policies against the public interest
Irdai seeks tighter controls on insurers' costs and commissions
 "Public policies against the public interest")
Irdai commission cap plan sparks concern among insurance brokers
Brokers say lower payouts may not necessarily translate into cheaper premiums and could instead squeeze servicing economics, trigger consolidation, and weaken insurance distribution
 "Irdai commission cap plan sparks concern among insurance brokers")
Insurers must compete on price, not distributor commission: Irdai chief
Irdai Chairman Ajay Seth says proposed insurance distribution reforms are not final and stakeholder feedback will be considered before draft regulations are issued
 "Insurers must compete on price, not distributor commission: Irdai chief")
IndusInd Bank targets 1.3% RoA, but insurance cuts pose earnings risk
Bank targets RoA of 1.25-1.30% over two years, but Jefferies says a 30% reduction in bancassurance fee income could lower profits by around 5%
 "IndusInd Bank targets 1.3% RoA, but insurance cuts pose earnings risk")
Irdai commission caps likely to hit jobs, weaken reach, cautions IBAI
Brokers' body says proposed commission caps and lower expense limits could lead to job losses, weaken independent distribution and hurt insurance access in smaller towns.
 "Irdai commission caps likely to hit jobs, weaken reach, cautions IBAI")
PB Fintech, Turtlemint Fintech tank up to 43% in 4 days; hit 52-week lows
PB Fintech and Turtlemint Fintech Solutions witnessed heavy selling pressure in recent days after Irdai proposed an overhaul of insurance distribution rules.
 "PB Fintech, Turtlemint Fintech tank up to 43% in 4 days; hit 52-week lows")
Irdai's insurance reforms: What may change for industry, insurers, buyers
Irdai wants insurance prices and product details to be visible without sharing phone or email; its wider reforms could affect insurers, distributors and how customers buy policies
 "Irdai's insurance reforms: What may change for industry, insurers, buyers")
Insurers seek softer landing on Irdai commission cuts in meet with chief
Ajay Seth meets insurers; industry seeks glide path on commissions, differentiated EoM limits
 "Insurers seek softer landing on Irdai commission cuts in meet with chief")
Containing costs
Irdai's proposals will help reduce mis-selling
 "Containing costs")
Banks may rejig insurance sales as Irdai proposes sharp commission cuts
Banks could favour long-term products that offer better commissions, while seeking to offset lower payouts elsewhere through higher volumes
Irdai's proposed commission cuts threaten PB Fintech's online economics
Analysts say PB Fintech's core online insurance revenue could take a nearly 30 per cent hit, though cost optimisation and higher volumes could cushion the impact
 "Irdai's proposed commission cuts threaten PB Fintech's online economics")
Irdai commission caps may weigh on insurance fee income of banks, NBFCs
Lenders with multiple insurer tie-ups and incentive-led payouts could face a sharper impact, while L&T Finance is seen as the most exposed among NBFCs
 "Irdai commission caps may weigh on insurance fee income of banks, NBFCs")
Irdai's fee cap proposal rattles distributors; insurance stocks tumble
Irdai's proposed commission caps could hit distributor incomes, with banks and NBFCs facing pressure from lower payouts on insurance products
 "Irdai's fee cap proposal rattles distributors; insurance stocks tumble")
PB Fintech may explore new business options after Irdai commission cuts
PB Fintech may explore manufacturing insurance products by seeking a licence as it assesses the impact of Irdai's proposed commission cuts on its distribution business