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 consultaion paper on distribution reforms, aimed at curbing rampant mis-selling of insurance policies, the Insurance Regulatory and Development Authority of India (IRDAI) has, for the first time, boldly talked about mandating insurance intermediaries, earning commissions above a prescribed threshold annually, disclose to the regulator details of commission income, related-party transactions, profits earned, and dividend repatriation.
The intermediaries will also be required to publish these disclosures on their websites, marking a significant step towards enhancing transparency and accountability in insurance distribution.
However, the regulator has remained silent over the issue of reducing the existing commissions to intermediaries which is being resisted by them.
Seeking to strengthen transparency and accountability while easing compliance burdens, the IRDAI, on Friday, has published a consultation paper on the IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026,proposing a series of amendments to the regulatory framework governing insurance intermediaries in alignment 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, including bank, 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.
The proposed amendments seek to align the existing regulatory framework governing Corporate Agents, Insurance Brokers, Insurance Marketing Firms, Web Aggregators and Common Public Service Centres(CPSC) with the SBSR Act, 2025 and to strengthen the business conduct requirements applicable to insurance intermediaries while ensuring continued protection of policyholder interests.
The insurance regulator has proposed 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.
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.
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 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.
The move comes amid growing concerns within the insurance sector over rising distribution payouts and allegations of aggressive selling practices in certain segments of the industry. According to IRDAI chairman Ajay Seth, the regulator is examining whether the current insurance distribution model remains sustainable in the long run.
The regulator appears particularly concerned about whether commission payouts are increasing disproportionately relative to premium growth.
Over the past few years, insurers have increasingly relied on banks, corporate agents and large distribution networks to drive premium growth. However, industry observers point out that customer acquisition costs have risen sharply alongside this expansion.
There are also concerns that high incentives may sometimes encourage unsuitable product sales, especially in bancassurance channels where insurance products are distributed through banks.
The proposed consultation paper, seeking comments from insurers, intermediaries and other stakeholders can be given to the IRDAI by 10th July..
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
As a Star Agent of National Insurance Company Limited,my humble request to IRDAI immediately take necessary steps against all GM/DGM/RM, employees of 4 PSUS,TPA, HOSPITALS, Otherwise corruption can’t stop.We are 24 hours x7 render all possible service to our policy holders,but insurers can’t look after the irregularities after point out, resulting face severe harrasment policy holders.AgentsCommission reduce are not the solution.
Manipal cigna stand alone company policy holder renewal policy for 3 yrs one time prem Rs 72,454/- paid but company commission paid only one yrs 8.47% balance 2 yrs commission not paid but IRDA commission rate 15% why company commission 8.47% paid plz necessary action company against paid me commission 15% one time for three yrs prem one time paid
Plz support agent & Justis agent
Regarding the suggestion sought by you, I would like to inform you that the agents appointed in insurance companies are not permanent but are commission agents. Those who have been dismissed by the company due to the insistence of a third party and whose commission has been stopped should also be given a permanent solution and a committee should be formed. Just as there is arbitration in banks and a bar councilor has to hear the complaint in the court, similarly a committee should be formed by IRDA and especially if the matter is not resolved, the court should decide. I am talking about LIC of India, which is an expert in not giving commission.