Important StoriesRetail inflation jumps to 21 months high of 5.54% in SeptemberRobert E. Hall, Michael Woodford win economics Nobel for work on economic shockNorth-Eastern Monsoon Nears: Heavy rain in TN, Kerala, Karnataka, Coastal Andhra PradeshCanadian Trade Minister leads biggest trade delegation to India in 30 years as FTA talks gather paceSEBI notifies common ad code for market intermediaries; allows celebrity endorsement for brandsFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. IRDAI may extend consultation, implementation timelines for distribution reforms With the Oct 25 feedback deadline likely to stretch, regulators may widen chats and roll out changes in steps after the next financial year By G Naga Sridhar Updated - October 12, 2026 at 09:09 PM. | Hyderabad ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/irdai-may-extend-consultation-implementation-timelines-for-distribution-reforms/article71575994.eceCopy The Insurance Regulatory and Development Authority of India (IRDAI) is likely to take a cautious approach to the proposed distribution reforms, as building consensus among stakeholders remains a challenge.

The regulator may extend the October 25 deadline for submitting feedback to allow wider consultations and push back the reforms implementation timeline, according to sources.

The IRDAI released a consultation paper on distribution reforms on September 23, proposing caps on insurer expenses, including commissions.

Industry representatives, including insurance company heads, have raised concerns over the methodology for calculating current distribution costs, including commissions, and the tighter norms proposed for the bancassurance channel. Some proposals on health insurance have also come up for discussion, an industry source told businessline.

While the IRDAI is keen to make insurance more affordable and has asked stakeholders to explore options such as non-financial incentives to lower distribution costs, the industry has called for a viable commission structure and a review of the proposed norms.

Consensus is also needed on bancassurance, which the regulator’s data identify as one of the costliest insurance distribution channels.

The consultation paper noted that, instead of translating into lower costs or better customer outcomes, the extensive customer reach of bancassurance entities appeared to be contributing to the maximisation of commission income.

Banks are also assessing the potential impact of commission caps on their ‘other income’. They are expected to participate in the consultation process through the Reserve Bank of India.

Insurers have sought a phased rollout or a longer implementation window, beyond the start of the next financial year, said sources.

The Insurance Brokers Association of India has also taken its concerns beyond the IRDAI and sought an appointment with Prime Minister Narendra Modi to present its views on the proposed reforms.

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