Online insurance distributor Policybazaar expects a major disruption in its business if the Insurance Regulatory and Development Authority of India (IRDAI) brings in caps on distributor commissions, as it says the move can fundamentally alter the economics of the business.
Yashish Dahiya, the group chairman of PB Fintech that runs insurance marketplace Policybazaar, said the company could evaluate an insurance manufacturing licence that will allow it to design, underwrite and sell policies, if its core distribution business gets disrupted by regulatory moves.
However, such conversations have not been taken up by the publicly listed company’s board, he told ET.
“We still believe that while there is a lot of noise, eventually the wrong thing will not happen. Now it's important to define what the wrong thing is,” Dahiya said.
While the IRDAI has not officially proposed any caps yet, it is reportedly working on proposals to limit commissions paid by insurers to distributors such as Policybazaar, with a draft expected later this month. The issue came up in January 2026 after the government amended the Insurance Act and gave power to the regulator to cap commissions.
