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Insurance stocks fall after IRDAI disclosure and cost reforms
Shares of multiple insurers declined for a third straight session on Monday after IRDAI’s proposed changes to expense and commission rules raised investor concerns about earnings impact.
Insurance shares in India fell on Monday, extending losses for a third consecutive session, with several insurers down as much as 4%, according to LiveMint Markets.
The sell-off followed the insurance regulator IRDAI’s new disclosure norms, which dampened investor sentiment toward insurance stocks. Turtlemint shares fell more than 4% for the third straight day, while ICICI Lombard slipped 2%, and HDFC Life Insurance and SBI Life Insurance fell 1% and 1.35%, respectively.
IRDAI has proposed changes to the insurance distribution framework, including lower limits on Expenses of Management and stricter controls on commissions. The proposals have raised concerns about their potential effect on insurers’ earnings and the economics of distribution for insurers and other financial intermediaries, LiveMint Markets reported.