PB Fintech Ltd. SHARES RISE NEARLY 6 PERCENT

PB Fintech shares snapped a seven-day losing streak on October 6, rising nearly 6 percent after a report said the Insurance Brokers Association of India (IBAI) had raised concerns over the Insurance Regulatory and Development Authority of India’s proposed overhaul of insurance distribution. IBAI has opposed key provisions in IRDAI’s recent draft consultation paper, warning that tighter commission caps and lower expense limits could have implications for employment, distribution reach and competition across the insurance sector. In a letter dated October 2 to Finance Minister Nirmala Sitharaman, IBAI said it supported measures aimed at curbing mis-selling, including the proposed ban on compulsory bundling of insurance products with loans and stronger suitability requirements. However, the association objected to what it called the consultation paper’s “central approach” of introducing more than 30 commission caps across insurance products and distribution channels. It also raised concerns over the proposal to reduce insurers’ overall expense limits by one-third. According to IBAI, such a reduction could force insurers to cut jobs across sales, servicing and claims functions, rather than being fully offset through efficiency gains. The concerns come after IRDAI released its two-part consultation paper, “Recalibrating Economics of Insurance Distribution”, on September 23. The paper proposes changes to the structure and economics of insurance distribution, with the regulator inviting stakeholder comments until October 25.