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ARTICLE · 13 OCTOBER 2026

Competition Concerns In IRDAI’s Consultation Paper On Recalibrating Insurance Distribution

Corporate Professionals - Advisors & Advocates
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IRDAI’s Consultation Paper on Recalibrating Economics of Insurance Distribution aims to strengthen competition in insurance distribution. This article argues that some of its proposals amount to differential treatment of distributors performing the same activity. Such treatment may weaken competition on merits, reduce customer choice and run against IRDAI’s own principle of ‘same activity, same regulation’.

IndiaAntitrust/Competition Law

This is Part 2 of our series on insurance distribution reforms. In Part 1, ‘Insurance Distribution Reforms in India: More Choice, Fair Competition, and an Indispensable Intermediary for Achieving “Insurance for All by 2047”’, published on Mondaq on 6 July 2026, we argued that intermediaries are essential to achieving ‘Insurance for All by 2047’, and that all distribution channels deserve a level playing field.

G.R. Bhatia (1) and Vatsala Pandey (2)

  1. Background

In September 2026, the Insurance Regulatory and Development Authority of India (IRDAI) released a Consultation Paper titled ‘Recalibrating Economics of Insurance Distribution’ for public comments. Part 1 states India’s experience, especially in the last decade, and the proposals in relation to the Distribution Reforms and Part 2 thereof gives the data in support of the proposals.3

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The views expressed in this article are solely those of the author in her personal capacity and are based on her understanding of the applicable legal and regulatory framework. They do not necessarily represent the views, policies or practices of organisation with which the authors is associated.

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