The Insurance Regulatory and Development Authority of India (IRDAI) has extended the deadline for submitting feedback on its proposed insurance distribution reforms to October 31, 2026, from the earlier deadline of October 25.
The regulator said it has received more than 650 comments on its two-part consultation paper, titled ‘Recalibrating Economics of Insurance Distribution’, released on September 23, 2026.
The extension is aimed at encouraging wider participation and providing stakeholders and members of the public additional time to submit their views and suggestions on the proposed changes.
The consultation paper seeks feedback from policyholders, insurers, intermediaries and other stakeholders on reforms intended to create a more efficient and inclusive insurance distribution ecosystem.
What Are IRDAI’s proposed insurance distribution reforms?
In its consultation paper, IRDAI proposed changes to insurance distribution economics, including tighter controls on commissions and management expenses, measures to address dark patterns and a framework for Mutual Insurance Intermediaries (MIIs).
The proposals also seek to prevent practices that require consumers to share personal information before accessing basic details about insurance products, including their features and pricing.
If implemented, the proposed changes could allow consumers to compare insurance products and review essential information before providing their personal details.
In an exclusive conversation with CNBC-TV18 on September 30, IRDAI Chairman Ajay Seth said the proposed overhaul was aimed at addressing the sharp rise in insurance distribution costs and commissions over the past several years.
Seth clarified that the proposals were not merely about reducing distribution costs, but about improving efficiency across the insurance sector and ensuring that its economics work better for policyholders.
“This paper is not merely about bringing distribution cost down. It is about having a far more efficient insurance sector,” Seth told CNBC-TV18.
He also said IRDAI had been engaging with industry participants on the proposals. According to Seth, he had met smaller groups of insurers, who had been supportive of the consultation paper, and was scheduled to meet insurance CEOs in Delhi on October 5.
Seth further explained that the proposed commission framework provides for additional commission in smaller cities and towns that remain underserved.
He said Insurance Distribution Entities (IDEs) would operate under an open-architecture model, while Insurance Distribution Persons (IDPs) would be permitted to sell products only from insurers with which they have tie-ups.
Stakeholders and members of the public can submit their feedback on the consultation paper until October 31, 2026.