The Insurance Regulatory and Development Authority of India has proposed comprehensive annual financial disclosures for insurance intermediaries earning more than ₹10 crore in commission income during a financial year, as part of measures intended to strengthen transparency, accountability and oversight while curbing policy misselling.
Commission and Related-Party Details to Be Disclosed
Under the draft, corporate agents, brokers, insurance marketing firms and web aggregators crossing the ₹10 crore threshold would be required to disclose commission income, related-party transactions, profits and dividends to IRDAI every year.
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The entities would also have to publish these disclosures on their websites. The proposals form part of the draft IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026.
This is the first time the regulator has sought such detailed public disclosures from insurance intermediaries. The draft also includes measures intended to simplify regulatory processes, reduce compliance costs and provide greater certainty and continuity in business operations.
The proposed rules, however, do not address intermediary commission structures. An effort-based framework had been widely expected as commission payouts have grown faster than premium collections across the insurance industry.
Life insurers paid about ₹60,800 crore in commissions during 2024-25, while non-life insurers paid ₹47,266 crore. Commission growth exceeded premium growth in both segments.
Individual Sellers to Be Linked to Every Policy
To improve accountability, IRDAI has proposed that every branch of a corporate agent appoint at least one specified person responsible for supervising solicitation activities at that location.
Every policy sold through an intermediary would have to be tagged to the person responsible for the sale. The policy could be linked to a specified person, broker-qualified person, insurance salesperson, authorised verifier, point-of-sales person or another authorised sales representative involved in the transaction.
The traceability requirement is intended to identify responsibility for individual sales and strengthen supervision across insurance distribution channels.
Penalty Proposed to Rise Tenfold
IRDAI has proposed increasing the penalty for acts of omission by the principal officer of a corporate agent from the current ₹1 crore to ₹10 crore.
The regulator said the measures are expected to strengthen supervisory oversight, reduce instances of misselling and improve service quality among insurance intermediaries.
The consultation paper combines tighter disclosure and accountability requirements with provisions aimed at easing compliance and supporting smoother business operations.
