In a move aimed at strengthening oversight of sales practices, IRDAI has proposed that every branch of a Corporate Agent designate at least one Specified Person (SP) responsible for supervising solicitation activities at that location.
The regulator has also proposed mandatory tagging of every policy sold through an intermediary to the individual responsible for the sale. Policies will be linked to the relevant Specified Person (SP), Broker Qualified Person (BQP), Insurance Sales Person (ISP), Authorised Verifier (AV), Point of Sales Person (POSP) or other authorised sales personnel.
Hyderabad:Unveiling its much awaited distribution reforms to check miselling of insurance policies, the IRDAI,for the first time, has said insurance intermediaries,earning commission above a prescribed threshold, have mandatorily to annually report the details of commission income, related-party transactions, profits earned and dividend repatriation to the regulator.
Also for the first time, such entities will be required to promote public accountability and these disclosures will also have to be published on the intermediaries’ websites, said the IRDAI.
Seeking to strengthen transparency and accountability while easing compliance burdens, the IRDAI, on Friday, has proposed a series of amendments to the regulatory framework governing insurance intermediaries in line with the new the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act).
Further, in a move aimed at strengthening oversight of sales practices, IRDAI has proposed that every branch of a Corporate Agent designate at least one Specified Person (SP) responsible for supervising solicitation activities at that location.
The regulator has also proposed mandatory tagging of every policy sold through an intermediary to the individual responsible for the sale. Policies will be linked to the relevant Specified Person (SP), Broker Qualified Person (BQP), Insurance Sales Person (ISP), Authorised Verifier (AV), Point of Sales Person (POSP) or other authorised sales personnel.
Also in another significant proposal is the removal of the mandatory registration requirement for Specified Persons engaged by Corporate Agents. Under the current framework, Corporate Agents are required to register Specified Persons by paying a fee of Rs 500 per individual. IRDAI has proposed dispensing with this requirement to reduce compliance costs and administrative burden, while continuing to monitor conduct through existing supervisory mechanisms.
Moreover, the SBSR Act has introduced stipulations with regard to the name of the insurance intermediaries i.e. the name of the insurance intermediary may contain ‘insurance’ or ‘assurance’ word in it. Similarly, the name of associations of such insurance intermediaries may contain ‘insurance’ or ‘assurance’ word in it.
In light of the changes introduced through the SBSR Act and consequential amendments to Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, the IRDAI has proposed amendments to the following insurance intermediaries’ Regulations:-
-IRDAI (Registration of Corporate Agents) Regulations, 2015
-IRDAI (Registration of Insurance Brokers) Regulations, 2018
-IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015
-IRDAI (Insurance Web Aggregators) Regulations, 2017
– IRDAI (Insurance Services by Common Public Service Centers) Regulations, 2019
The proposed amendments seek to align the existing regulatory framework governing Corporate Agents, Insurance Brokers, Insurance Marketing Firms, Web Aggregators and CPSC with the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Act, 2025 and to strengthen the business conduct requirements applicable to insurance intermediaries while ensuring continued protection of policyholder interests.
The measure is intended to enhance accountability and traceability in the sales process while improving policyholder protection.
According to IRDAI, these measures are expected to strengthen supervisory oversight, curb instances of mis-selling and improve the quality of services provided by insurance intermediaries.
Alongside the tighter governance norms, the regulator has proposed several ease-of-doing-business initiatives. These include the removal of registration renewal procedures for intermediaries, rationalisation of fee structures and payment provisions, and the introduction of transition arrangements to ensure a smooth migration to the revised regulatory regime.
The insurance regulator is proposing a comprehensive overhaul of the regulatory framework governing insurance intermediaries, combining stricter transparency and accountability norms with measures aimed at improving ease of doing business. The proposed changes mandate enhanced disclosures on commissions, related-party transactions and profits, while introducing greater traceability of policy sales by linking them to individual sales personnel.
At the same time, the reforms seek to reduce compliance burdens through the removal of registration renewal requirements and simplified procedures for corporate agents, with the overarching objective of strengthening policyholder protection and improving the efficiency of the insurance distribution ecosystem.
In a move aimed at strengthening oversight of sales practices, IRDAI has proposed that every branch of a Corporate Agent designate at least one Specified Person (SP) responsible for supervising solicitation activities at that location.
The regulator has also proposed mandatory tagging of every policy sold through an intermediary to the individual responsible for the sale. Policies will be linked to the relevant Specified Person (SP), Broker Qualified Person (BQP), Insurance Sales Person (ISP), Authorised Verifier (AV), Point of Sales Person (POSP) or other authorised sales personnel. The measure is intended to enhance accountability and traceability in the sales process while improving policyholder protection.
According to IRDAI, these measures are expected to strengthen supervisory oversight, curb instances of mis-selling and improve the quality of services provided by insurance intermediaries.
Alongside the tighter governance norms, the regulator has proposed several ease-of-doing-business initiatives. These include the removal of registration renewal procedures for intermediaries, rationalisation of fee structures and payment provisions, and the introduction of transition arrangements to ensure a smooth migration to the revised regulatory regime.
A significant proposal is the removal of the mandatory registration requirement for Specified Persons engaged by Corporate Agents. Under the current framework, Corporate Agents are required to register Specified Persons by paying a fee of ₹500 per individual. IRDAI has proposed dispensing with this requirement to reduce compliance costs and administrative burden, while continuing to monitor conduct through existing supervisory mechanism.
The regulator believes the proposed reforms will simplify compliance, facilitate business continuity and enhance operational efficiency, while ensuring that consumer interests remain adequately protected in an evolving insurance distribution landscape.