How Is Policybazaar Pushing Insurers to Roll Back Commission Cuts?
About the Commission Cut Controversy
What Triggered the Tension Between Insurers and Policybazaar?
However, since Policybazaar contributes a significant chunk of digital insurance distribution in India, it holds considerable leverage in influencing policy sales volumes. The aggregator’s counter-communication, suggesting a potential business shift to those maintaining higher payout structures, has forced insurers to revisit their stance.
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How Insurers Are Responding
Sources told CNBC-TV18 that the insurer community may adopt a middle-ground solution — restoring part of the commission while reworking reward-linked metrics to retain profitability. Policybazaar’s official response to the report is still awaited.
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Why This Negotiation Matters
For insurers, retaining visibility on such a platform is crucial for lead generation, especially among younger, digitally savvy customers. For Policybazaar, maintaining high commission levels directly sustains its marketing engine and partner acquisition models. This tug-of-war underscores the evolving power dynamics in India’s regulated financial marketplace.
Investor Takeaway
Indian-Share-Tips.com’s Chief Market Strategist Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, observes that the Policybazaar–insurer standoff reflects a broader shift where digital distribution players now command substantial leverage over traditional insurers. He adds that the outcome of this negotiation could redefine how online intermediaries are compensated in the next IRDAI cycle.
Related Queries
Why Are Insurers Considering Rolling Back Commission Cuts to Policybazaar?
What Could the IRDAI’s Role Be in Regulating Online Commission Structures?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
