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IRDAI Chairman assures industry of consensus before implementing distribution reforms
Oct-28-2026

Amid concerns over the impact of the proposed changes in insurance distribution, IRDAI Chairman Ajay Seth has assured the industry that the regulator will implement the reforms only after reaching a consensus. He said the regulator will work to expedite claims in case of health policies. He said he has been meeting people extensively since the release of the discussion paper on distribution reforms to hear out the industry's concerns. Regarding concerns around commissions proposed as part of the new proposals, he said the paper suggests higher commissions initially as the amount of efforts required to sell a policy is much higher than the efforts needed at the time of renewal.

Commenting on the online insurance aggregators, he said such entities play an important role, but they also tend to take up other work like having a physical distribution channel eyeing the penetration gap, and also questioned the need for having dynamic pricing. He also questioned the need for sharing personal details before a premium structure is shared, including the insistence on excluding their telephone numbers from 'do not disturb' lists.

On the issue of portability, he rued that the activity is concentrated in a very small set of entities, pointing out that the commissions paid may be playing a role in customer behaviour. Highlighting that 60% of the port-ins activity was concentrated in three entities, reflecting customer choice for better insurer, he said the same set of entities also accounted for 20% of port-outs. He also said 'we need to learn from what has succeeded in the country, and the best practices from the banking and capital markets industry needs to be picked up by the insurance sector as well.'
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