๐Ÿ‡จ๐Ÿ‡ฆ Manulife's Third-Quarter Core Earnings Rise 4% to C$2.1 Billion and Core EPS Hits a Record C$1.24, While Reported Net Income Falls to C$1.4 Billion on Market Losses โ€” Manulife Financial Corporation (third-quarter 2026 press release, Form 6-K filed with the SEC, November 4, 2026)๐Ÿ‡จ๐Ÿ‡ฆ Sun Life's Third-Quarter Underlying Net Income Rises 9% to C$1.15 Billion, but Reported Net Income Falls 29% to C$785 Million and Wealth Outflows Reach C$32.7 Billion โ€” Sun Life Financial Inc. (third-quarter 2026 results release, Form 6-K filed with the SEC, November 4, 2026)๐Ÿ‡บ๐Ÿ‡ธ Aflac's Third-Quarter Net Earnings Drop to $303 Million After $1.1 Billion of Portfolio-Repositioning Losses, While Adjusted EPS Edges Down 2.4% to $2.43 and Japan's Margin Narrows โ€” Aflac Incorporated (third-quarter 2026 earnings release, SEC Exhibit 99.1, November 4, 2026)๐Ÿ‡บ๐Ÿ‡ธ Prudential Financial's Third-Quarter Adjusted Operating Income Falls to $1.32 Billion as the Prudential of Japan Sales Suspension Cuts Japan Earnings 25% โ€” Prudential Financial, Inc. (third-quarter 2026 earnings release, SEC Exhibit 99.1, November 3, 2026)๐Ÿ‡บ๐Ÿ‡ธ Lemonade's Third-Quarter In-Force Premium Jumps 34% to $1.55 Billion and Revenue Rises 73% to $336 Million, With the Net Loss at $43.7 Million and a Positive-EBITDA Quarter Promised for Q4 โ€” Lemonade, Inc. (third-quarter 2026 shareholder letter, Form 8-K exhibit filed with the SEC)๐Ÿ‡บ๐Ÿ‡ธ Corebridge Financial's Third-Quarter Operating EPS Rises 27% to $1.22 as the Share Count Falls 17%, With the Equitable Merger Reported to Be Making 'Significant Progress' โ€” Corebridge Financial, Inc. (third-quarter 2026 earnings press release, Form 8-K, November 2, 2026)๐Ÿ‡บ๐Ÿ‡ธ Jackson Financial's Third-Quarter Adjusted Operating Earnings Rise to $517 Million as Record RILA Sales of $3.0 Billion Lift Retail Annuity Sales 22% โ€” Jackson Financial Inc. (third-quarter 2026 earnings release, SEC Exhibit 99.1)๐Ÿ‡จ๐Ÿ‡ฆ Fairfax Financial's Third-Quarter Net Earnings Fall to $1,097 Million as an $859 Million Investment Loss Offsets Higher Insurance Revenue and a Stronger Underwriting Result โ€” Fairfax Financial Holdings Limited (third-quarter 2026 interim report, Form 6-K filed with the SEC)๐Ÿ‡ฆ๐Ÿ‡บ A Magnitude 4.9 Earthquake Off South Australia Shook Adelaide: What Australian Home Insurance Covers and Why Earthquake Deductibles and Aftershock Clauses Matter โ€” Insurance Business Australia (reporting Geoscience Australia and insurance commentary)๐Ÿ‡ฎ๐Ÿ‡ณ SBI Life's First-Half FY27 Profit Rises 17% to Rs 1,270 Crore and Value of New Business Climbs 19% to Rs 3,270 Crore, While Costs Take a Larger Share of Premium โ€” Kotak Neo (report on SBI Life Insurance's H1 FY27 results)๐Ÿ‡จ๐Ÿ‡ฆ Manulife's Third-Quarter Core Earnings Rise 4% to C$2.1 Billion and Core EPS Hits a Record C$1.24, While Reported Net Income Falls to C$1.4 Billion on Market Losses โ€” Manulife Financial Corporation (third-quarter 2026 press release, Form 6-K filed with the SEC, November 4, 2026)๐Ÿ‡จ๐Ÿ‡ฆ Sun Life's Third-Quarter Underlying Net Income Rises 9% to C$1.15 Billion, but Reported Net Income Falls 29% to C$785 Million and Wealth Outflows Reach C$32.7 Billion โ€” Sun Life Financial Inc. (third-quarter 2026 results release, Form 6-K filed with the SEC, November 4, 2026)๐Ÿ‡บ๐Ÿ‡ธ Aflac's Third-Quarter Net Earnings Drop to $303 Million After $1.1 Billion of Portfolio-Repositioning Losses, While Adjusted EPS Edges Down 2.4% to $2.43 and Japan's Margin Narrows โ€” Aflac Incorporated (third-quarter 2026 earnings release, SEC Exhibit 99.1, November 4, 2026)๐Ÿ‡บ๐Ÿ‡ธ Prudential Financial's Third-Quarter Adjusted Operating Income Falls to $1.32 Billion as the Prudential of Japan Sales Suspension Cuts Japan Earnings 25% โ€” Prudential Financial, Inc. (third-quarter 2026 earnings release, SEC Exhibit 99.1, November 3, 2026)๐Ÿ‡บ๐Ÿ‡ธ Lemonade's Third-Quarter In-Force Premium Jumps 34% to $1.55 Billion and Revenue Rises 73% to $336 Million, With the Net Loss at $43.7 Million and a Positive-EBITDA Quarter Promised for Q4 โ€” Lemonade, Inc. (third-quarter 2026 shareholder letter, Form 8-K exhibit filed with the SEC)๐Ÿ‡บ๐Ÿ‡ธ Corebridge Financial's Third-Quarter Operating EPS Rises 27% to $1.22 as the Share Count Falls 17%, With the Equitable Merger Reported to Be Making 'Significant Progress' โ€” Corebridge Financial, Inc. (third-quarter 2026 earnings press release, Form 8-K, November 2, 2026)๐Ÿ‡บ๐Ÿ‡ธ Jackson Financial's Third-Quarter Adjusted Operating Earnings Rise to $517 Million as Record RILA Sales of $3.0 Billion Lift Retail Annuity Sales 22% โ€” Jackson Financial Inc. (third-quarter 2026 earnings release, SEC Exhibit 99.1)๐Ÿ‡จ๐Ÿ‡ฆ Fairfax Financial's Third-Quarter Net Earnings Fall to $1,097 Million as an $859 Million Investment Loss Offsets Higher Insurance Revenue and a Stronger Underwriting Result โ€” Fairfax Financial Holdings Limited (third-quarter 2026 interim report, Form 6-K filed with the SEC)๐Ÿ‡ฆ๐Ÿ‡บ A Magnitude 4.9 Earthquake Off South Australia Shook Adelaide: What Australian Home Insurance Covers and Why Earthquake Deductibles and Aftershock Clauses Matter โ€” Insurance Business Australia (reporting Geoscience Australia and insurance commentary)๐Ÿ‡ฎ๐Ÿ‡ณ SBI Life's First-Half FY27 Profit Rises 17% to Rs 1,270 Crore and Value of New Business Climbs 19% to Rs 3,270 Crore, While Costs Take a Larger Share of Premium โ€” Kotak Neo (report on SBI Life Insurance's H1 FY27 results)
Insurance policy documents and a pen representing life insurance distribution (illustrative)
Regulation๐Ÿ‡ฎ๐Ÿ‡ณIndia

IRDAI Is Reportedly Weighing Commissions Paid Over the Life of a Policy, Product-Wise Caps and Stricter Disclosure, With a Distribution Consultation Paper Expected by July's End

PolicyRix Editorialยทยท7 min read
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Business Today reported on July 9, 2026, citing unnamed sources, that India's insurance regulator is considering paying distributors commissions over a policy's term instead of mostly upfront, with product-wise caps and tighter disclosure, and that its chairman Ajay Seth said a consultation paper on distribution reforms was expected by the end of July; no percentages or schedule were given.

India's insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), is reportedly considering a change to how insurance distributors are paid. This article is based on a Business Today report dated July 9, 2026. The report attributes its account to sources familiar with the discussions, who are not named, and describes the change as under consideration and not as a finalised rule. It also quotes IRDAI's chairman, Ajay Seth, as saying that a consultation paper on distribution reforms was expected by the end of July 2026. The paper itself was not reviewed, and it is not known from the source whether it has been published, so readers should check IRDAI's website for the current position.

The current structure

According to the report, distributors can earn commissions of up to 40% of premiums on certain life and health insurance products, and a large share is paid at the time of sale. A commission is the payment an insurer makes to an agent or intermediary for selling a policy. When most of it is paid upfront, the seller's income depends mainly on completing the sale, and less on whether the customer keeps the policy or is well served afterward. That is the concern behind the reported reform.

What is being considered

The main idea is that commissions would be paid over the policy's tenure instead of mostly at the start. IRDAI's stated aims, according to the report, are to reduce mis-selling and unnecessary policy replacements, to improve persistency, meaning the share of policies that stay in force, and to build consumer trust. The report says the change would bring India closer to structures used in the United States, United Kingdom and several European countries. The report gives no percentages or time periods for the staggered schedule, so it is not known how much would be paid at the start or how the rest would be spread. A hypothetical illustration, with invented numbers, shows the logic: if a distributor were paid 40% of a premium at sale, the incentive to sell would be strong; if the same total were paid in equal parts over five years, the distributor would have a reason to see the customer stay. The report does not propose these numbers.

An effort-based model

The report also says the regulator is considering linking distributor pay to the effort involved in selling and servicing a policy. Agents who give personalised advice, help with documentation and support customers through claims could earn more than distributors, such as banks, that mainly sell insurance as an add-on to other products. This could shift income between channels, and the report does not say how the effort would be measured.

Other measures

Two further measures are described as under consideration. The first is product-wise commission caps, based on the complexity and tenure of each product, instead of one overall cap. The second is stricter disclosure requirements for agents, brokers and other intermediaries, so that customers see more about how the seller is paid. The report does not specify what would be disclosed or to whom.

Expert views

The report quotes two commentators. Kulin Shah of Onsurity says the reforms signal a shift from rewarding customer acquisition to rewarding value delivered to customers, and that the transition should be digital-led. Arun Ramamurthy of Staywell.Health says linking intermediary pay to policy continuity should reduce mis-selling and improve the quality of advice. These are opinions of people in the industry and not findings.

What the report does not say

The report does not say which products the staggered model would cover beyond the life and health products to which the 40% cap applies. It gives no figures on mis-selling rates and no commission amounts beyond the 40% ceiling. It does not describe a timetable for any rule to take effect, and it does not say how existing policies would be treated. It also does not describe the views of insurers, banks or agent associations, who could be affected differently.

Why the caveats matter

A reported plan based on unnamed sources can change substantially or be dropped. Consultation papers in India are normally followed by a comment period, so even if a paper was issued, final rules would come later. Insurers, distributors and policyholders should therefore treat the report as an indication of the regulator's direction and not as a rule that is in force.

Questions the consultation would need to answer

If a consultation paper is published, several design questions will decide the effect. How much of the total commission would remain upfront, and for how many years would the rest be paid? What happens to the unpaid portion if a customer surrenders the policy or the agent leaves the business? Would the same structure apply to banks that distribute insurance through their branches, whose staff are paid in other ways? And how would persistency be measured so that agents are not penalised for lapses they cannot control? The report does not address these points, which is why it is best read as a statement of intent and not a plan.

Limits

This article relies on a single news report based on unnamed sources and does not reproduce any IRDAI document. It is general information, not insurance or financial advice.

Key Points

  • 1IRDAI is reportedly considering paying distributors over a policy's tenure instead of mostly at the time of sale, to reduce mis-selling and unnecessary policy replacements and to improve persistency; the report relies on unnamed sources.
  • 2Distributors can currently earn commissions of up to 40% of premiums on certain life and health insurance products, with a large share paid when the policy is sold.
  • 3Other measures under consideration include product-wise commission caps based on complexity and tenure and stricter disclosure rules for agents, brokers and other intermediaries.
  • 4A remuneration model linked to the effort of selling and servicing could pay agents who advise and support claims more than distributors such as banks that sell insurance as an add-on.
  • 5IRDAI chairman Ajay Seth said a consultation paper on distribution reforms was expected by the end of July 2026; the article gives no percentages, time periods or list of covered products.

Why This Matters

Commission structure shapes how insurance is sold. If most of an agent's pay arrives on day one, there is an incentive to sell and replace policies rather than to keep customers covered. A change to staggered pay would affect agents, banks and insurers, but the reported plan is still at the idea stage.

#irdai#insurance commissions#mis-selling#distribution reforms#persistency#india
Verified ยท Nov 3, 2026Read Original
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, legal, or insurance advice. Always consult a qualified professional before making financial decisions. PolicyRix reports on publicly available information from third-party sources and cannot guarantee the accuracy or completeness of such information.

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