New Delhi, Sept. 24 -- Zerodha founder and CEO Nithin Kamath has renewed his warning that regulatory risk remains the biggest threat for any regulated financial business after the Insurance Regulatory and Development Authority of India (IRDAI) proposed sweeping changes to insurance commission rules.

On Wednesday, IRDAI issued a consultation paper on 'Recalibrating Economics of Insurance Distribution,' setting out a comprehensive framework of reforms covering insurance distribution, its structure, expenses, commissions, market conduct, transparency, and leveraging digital infrastructure.

The consultation paper proposes different commission limits based on insurance type, product, and distributor, with tied agents allowed higher commissio...