The Insurance Regulatory and Development Authority of India (IRDAI), on September 23, 2026, issued a Public Consultation Paper on “Recalibrating Economics of Insurance Distribution.
The following has been stated: -
•IRDAI released a consultation paper on September 23, 2026, proposing reforms to simplify insurance distribution, improve transparency, and align incentives with policyholder value.
•The proposed framework introduces three broad categories: Insurance Distribution Entities (IDEs), Insurance Distribution Persons (IDPs), and Market Infrastructure Institutions (MIIs), with simpler registration and lower entry requirements.
•The Expense of Management (EoM) framework is proposed to be recalibrated, with lower limits and a phased reduction in permitted expenses.
•For life insurers, the EoM limit is proposed at 15% of GDPI within two years and 12.5% within five years, while general insurers would move to 20% of domestic GDPI within five years.
•The last date for submission of comments and feedback is October 25, 2026.
The detailed notification is given in the document below.
