PB Fintech Crashes 26%, Turtlemint Hits Lower Circuit On IRDAI Commission Cap Plan

by · Inc42

SUMMARY

  • PB Fintech shares crashed 26%, while Turtlemint hit its 20% lower circuit after IRDAI proposed hard commission caps and tighter expense limits for the insurance sector
  • The proposed caps threaten to compress the take rates of insurance distributors, with brokerages identifying Policybazaar parent PB Fintech as one of the most exposed companies
  • IRDAI has proposed nil commission for distribution entities on new-vehicle third-party insurance, a 5% cap on new-vehicle own-damage cover, and health insurance commission limits of 15% on first-time sales and 5% on renewals