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PB Fintech shares tumble after IRDAI proposes changes to insurance commissions
The selloff followed IRDAI’s proposal to lower commission caps and tighten expense norms for insurance distribution, raising investor fears about reduced insurer profitability and fee income.
PB Fintech’s shares fell sharply in recent days after India’s Insurance Regulatory and Development Authority (IRDAI) released a consultation paper proposing changes to insurance distribution economics, including lower commission caps and tighter expense norms.
LiveMint Markets reports that the proposal triggered broad selling pressure across insurers, insurance distributors, and some banking stocks, with investors concerned the measures could reduce profitability for insurers.
The market also priced in the possibility of lower future earnings for firms that earn commissions through bancassurance, particularly those tied to loan-linked insurance products, as the tighter rules could reduce fee income for banks and NBFCs.
LiveMint Markets noted that the rapid repricing reflects investor expectations that the proposed distribution changes would weigh on insurer performance and commission-based revenue streams.