New Delhi, Sept. 24 -- Proposed tighter caps on insurance commissions could pose a slight earnings risk for banks, particularly through bancassurance fees from credit-protection products, as the insurance regulator seeks to recalibrate distribution costs and commission structures from FY28, Jefferies said in a research report.

"Insurance regulator proposes to tighten caps on insurance commissions from FY28," Jefferies said, adding that the proposed rules would be applicable prospectively and that the regulator has sought public opinion on the draft norms over the next month. The brokerage said the changes would be "tad negative" for banks' bancassurance fees, especially credit-protection premiums, which are largely single-premium product...