New Delhi, Sept. 24 -- Bank and financial services stocks cracked in trade on Thursday, 24 September, after bank-led insurance distribution have come under the regulator's scanner.

The Insurance Regulatory and Development Authority of India (IRDAI) has questioned the current economics of bank-led insurance distribution, particularly the level of remuneration paid to banks under multiple tie-up arrangements. The regulator has raised the issue of whether these payouts adequately correspond to the work involved in selling insurance or instead reflect the value of access to the bank's customer base.

The concerns form part of a wider push to overhaul insurance distribution and shift the focus from premium generation towards affordability, cu...