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Policy▼ Bearish for L&T Finance
IRDAI commission caps may cut insurance income at banks and NBFCs
The brief
- Proposed commission caps and bundling restrictions could pressure lender earnings
- L&T Finance is seen as the most exposed among NBFCs
- Lower insurance distribution fees could weigh on banks, NBFCs and especially L&T Finance earnings
| Stock | Traded | That day | vs Nifty | Volume | Since |
|---|---|---|---|---|---|
| LTF | Thu, 24 Sept | −9.0% | −7.4% | 9.5× | −8.4% · Nifty −1.3% |
✓ Classifier read this as negative; LTF fell 7.4% against the Nifty on the day it traded.
IRDAI's proposed insurance distribution reforms
IRDAI proposed phased cuts to insurers’ expense limits, commission caps and a ban on compulsory insurance bundling with loans. The proposals prompted debate over premiums, mis-selling and distributor payouts, while reports highlighted possible earnings risks for PB Fintech.
Thursday, 24 September
- IRDAI commission caps may cut insurance income at banks and NBFCs