New Delhi, Oct. 15 -- Insurance companies preparing to navigate the Insurance Regulatory and Development Authority of India's (Irdai) proposed regulatory changes should anticipate shifts across distribution strategy, cost structure and their core platform. A comprehensive rethink of their business model, rather than incremental tweaks, could help them differentiate themselves and thrive.

A value shift away from distribution: As commissions drop, it is expected that pricing will follow and insurance 'manufacturers' will pass on the benefit to consumers.

The total new business or gross written premium could consequently shrink; even if the number of policies grows, it will likely not expand commensurately in the short-term to compensate f...