The insurance regulatory and development authority of India (IRDAI) has asked insurers to sharply reduce commissions on policies sold through the upcoming BimaSugam platform, with companies committing to offering 'zero commission' products and charging only a nominal platform fee,
according to a CNBC-TV18 report.
The development follows a high-level meeting on 17 March 2026 between IRDAI’s top leadership and insurance chief executive officers (CEOs), which focused on BimaSugam and the proposed public insurance registry (PIR). CNBC-TV18 says it has reached out to the regulator for comment, with a response still awaited.
BimaSugam is being positioned as a digital marketplace for insurance sales, servicing and claims, aimed at simplifying access and improving customer experience across the policy lifecycle.
At the same meeting, the regulator also discussed the rollout of the PIR, a consent-driven digital infrastructure designed to cover the entire insurance value chain, from policy issuance to claims settlement, grievance redressal and dispute resolution.
During the meeting, IRDAI chairman Ajay Seth highlighted the need to strengthen transparency, accountability and trust in the insurance ecosystem, stressing the importance of a robust governance architecture and data-driven market development.
IRDAI's whole-time member (WTM), Deepak Sood, outlined the economic rationale for the PIR, noting that the platform would help reduce information asymmetry, improve fraud detection, and enable more effective regulatory oversight.
The regulator says the PIR would function as a structured, interoperable data framework, empowering consumers with better access to information while enhancing efficiency across the sector.
A dedicated session on BimaSugam, including a presentation by Prasun Sikdar, managing director and chief executive officer (MD&CEO) of Bima Sugam India Federation, outlined the platform’s role in expanding insurance accessibility and streamlining service delivery.
The discussions also emphasised the need for strong industry collaboration, compliance readiness, data governance standards and cybersecurity safeguards to ensure smooth implementation of the new digital insurance infrastructure.
The move to push lower commissions on BimaSugam policies is seen as a significant step towards making insurance products more cost-effective and transparent for consumers, while reshaping distribution economics in the sector.
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