IRDAI extends deadline for feedback on distribution reforms to October 31; receives over 650 comments

IRDAI reviews insurance distribution reforms: The Insurance Regulatory and Development Authority of India (IRDAI) is reviewing proposed insurance distribution reforms following discussions with insurance brokers, including those operating through the Point of Sales Person (PoSP) model. Earlier, October 25 was the deadline for stakeholders to submit feedback on the proposed changes. IRDAI Chairman Ajay Seth met brokers engaged in the PoSP business, during which industry players raised concerns over commission structures and the cost of technology platforms used to distribute insurance products. Here's why the deadline for stakeholders to submit feedback on the proposed changes has been extended.

IRDAI extends deadline for feedback on insurance distribution reforms to October 31; receives over 650 comments

The Insurance Regulatory and Development Authority of India (IRDAI) has extended the deadline for stakeholder feedback on its proposed insurance distribution reforms to October 31, 2026, after receiving over 650 comments. The regulator released the consultation paper on September 23, 2026, to seek wider participation from stakeholders and the public. The feedback will help refine the proposals, while all other consultation terms remain unchanged. The key issues under consideration include commission parity, the treatment of technology platform costs and the regulatory framework governing insurance distribution.

PoSP urges regulator to allow them to charge insurers

PoSP brokers have urged the regulator to allow them to charge insurers for technology platform costs, arguing that these platforms play a crucial role in facilitating insurance sales and expanding distribution. However, IRDAI is not in favour of insurers paying additional technology fees over and above the commissions paid to brokers. The regulator's view is that customers should decide whether they want to pay for technology platform services, rather than requiring insurers to bear these additional costs.

PoSP brokers seek commission parity with individual agents

Another key demand raised during the discussions was commission parity between PoSP brokers and individual insurance agents. Industry players have argued that PoSPs perform a similar last-mile distribution role and should receive comparable commissions for their services. The proposed reforms seek to address concerns around insurance distribution practices, remuneration and the role of technology platforms in the sector. The outcome of the discussions could have implications for brokers operating large PoSP networks. According to industry inputs, PB Partners, Policybazaar's PoSP platform, Turtlemint and InsuranceDekho collectively have more than 10 lakh PoSP agents, highlighting the scale of this distribution channel.

PoSP brokers seek commission parity with individual agents

Another key demand raised during the discussions was commission parity between PoSP brokers and individual insurance agents. Industry players have argued that PoSPs perform a similar last-mile distribution role and should receive comparable commissions for their services. The proposed reforms seek to address concerns around insurance distribution practices, remuneration and the role of technology platforms in the sector. The outcome of the discussions could have implications for brokers operating large PoSP networks. According to industry inputs, PB Partners, Policybazaar's PoSP platform, Turtlemint and InsuranceDekho collectively have more than 10 lakh PoSP agents, highlighting the scale of this distribution channel.