Insurance Stocks Slide Following IRDAI Fee Cap Proposal

Shares of Indian insurance companies, distributors, and lenders slumped on Thursday after the IRDAI proposed caps on commissions and tighter management expenses.

PB Fintech led the market decline with a record 23% plunge, while Max Financial Services fell up to 12%, L&T Finance slipped 10%, and HDFC Life tumbled up to 8.5%.

Analysts noted that the proposed regulatory measures could slash insurance fee income for banks and digital brokers by up to 90% in high-margin categories.