Insurance brokers warn Irdai reforms could threaten million jobs

The Insurance Brokers Association of India (IBAI) has cautioned that pending regulatory changes by the Insurance Regulatory and Development Authority of India (Irdai) pose significant risks to the livelihoods of approximately one million insurance professionals. The brokers' body argues that proposed commission caps and reduced expense limits could substantially impact employment levels across the distribution network. According to IBAI, the proposed reforms may inadvertently squeeze margins for distribution partners, potentially leading to job losses and consolidation within the sector. The association has also flagged concerns that stricter cost controls could paradoxically encourage unethical business practices as agents seek alternative revenue streams outside regulatory oversight. IBAI contends that the proposed changes, while intended to protect consumers and enhance competition, require careful calibration to avoid unintended consequences for the insurance workforce. The brokers have urged Irdai to consider a more balanced approach that maintains viable earning opportunities for distribution professionals while advancing regulatory objectives.