Insurance distribution in India: plain-English guides to IRDAI’s 2026 reforms

IRDAI’s paper would change how brokers, banks, agents, PoSPs and dealers are paid. Each guide covers one part, with the numbers, the sources and the questions IRDAI is asking.

Updated 24 Oct 2026

Photo: Sid Saxena / Unsplash

Commission caps and EoM limits

The commission caps IRDAI has proposed for general insurance in 2026, product by product, for distribution entities and agents, plus the cut in the expense of management limit from 30% to 20%.

Two people shaking hands over a signed document

Insurance broker commission

How IRDAI’s proposed reforms would change insurance broker commission in India: lower caps for brokers than agents, the new distribution entity licence, and why IBAI says broker revenue could fall 60–70%.

Bancassurance and loan bundling

What IRDAI’s 2026 distribution proposal means for bancassurance: lower caps for banks as distribution entities, a ban on compulsory loan-linked insurance, and what banks say it will cost.

PoSP, Bima Sugam and motor

What IRDAI’s 2026 proposal means for PoSPs, motor dealers and Bima Sugam: nil commission on new-vehicle third-party cover, MII platforms, and PoSP demands for commission parity.

The whole paper, explained

Key numbers, before and after, timeline and who is pushing back.

People talking around a table with laptops

Have your say

React to IRDAI’s 32 questions in one tap and see where others stand.

Questions people ask

What is IRDAI’s distribution paper?

It is the consultation paper “Recalibrating Economics of Insurance Distribution”, issued on 23 September 2026. It proposes commission caps, lower expense limits, a simpler licence structure and new conduct rules for everyone who sells insurance.

Who does it affect?

Brokers, corporate agents including banks and NBFCs, individual agents, PoSPs, web aggregators, motor dealers, insurers and policyholders.

How do I respond to IRDAI?

IRDAI takes responses on its consultation portal, iib.gov.in/dr, using its Excel form, until 31 October 2026. The GI Pulse response tool helps you fill that form question by question.