India, Sept. 25 -- IRDAI Resets Insurtech's Economics

The IRDAI has proposed a radical overhaul of the insurance tech sector. The draft norms threaten to dismantle lucrative payout structures, impose commission caps and introduce tighter expense limits for insurance distributors. Can the sector adapt to this new regime?

The Commission Reset: IRDAI's consultation paper seeks to re-introduce product-level commission ceilings. Under the proposed framework, mandatory or near-mandatory products will attract nil or low commissions for IDEs (such as PB Fintech and Turtlemint's insurtech arm), while products requiring greater selling and servicing efforts will have 15% cap.

The IRDAI Eclipse: The regulator has also proposed lowering EoM limits...