The Insurance Regulatory and Development Authority of India (IRDAI) has proposed new disclosure norms for insurance intermediaries earning more than Rs 10 crore in commissions annually, according to medianama.com. These intermediaries would need to disclose details of commissions earned, related party transactions, profits, and dividends repatriated both to IRDAI and on their websites. The draft regulations, released in 2026, aim to enhance transparency and accountability in the insurance sector.
The draft IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026, were issued as a consultation paper outlining these enhanced disclosure requirements. This is the first time IRDAI has sought such detailed public disclosures from insurance intermediaries. The proposals also seek to ease compliance requirements, though the draft does not specify how commissions should be reported. The consultation paper is part of broader insurance distribution reforms, including potential caps on commissions payable to agents.
The move comes amid rising commission expenses in the insurance industry. IRDAI's latest annual report showed life insurers paid Rs 60,800 crore in commissions during 2024-25, an 18% year-on-year increase, while total premium growth was under 7%. Non-life insurers paid Rs 47,266 crore in commissions the same year. IRDAI has previously reprimanded 23 insurers for exceeding expense limits, underscoring the regulator's focus on controlling commission-related costs.
The consultation paper and draft regulations are publicly available on IRDAI’s website, with the regulator inviting feedback. The reforms form part of IRDAI’s efforts to improve transparency and governance in insurance distribution, with commission disclosures expected to become mandatory once the regulations are finalized.