PolicyBazar shares fell 36% to ₹1,210, a 52‑week low, after Irdai unveiled new distribution regulations. The tech‑driven insurer lost ₹680 in a single day, marking its steepest decline since the start of the fiscal year.
Management warned that the proposed changes could erode non‑life margins more than life segments, citing the company’s current exposure to high‑commission channels.
Other insurers also felt the shock: HDFC Life slid 6.1%, ICICI Prudential closed 4.2% lower, LIC down 0.3%, while SBI Life edged up 0.1%. TurtleMint, a peer in tech‑based policy sales, fell 20% to ₹109, hitting the lower circuit.
Irdai’s draft bans dark patterns, caps commissions, tightens expense‑of‑management limits, and introduces safeguards against mis‑selling. Analysts argue the move could squeeze margins across the sector, especially for firms with large direct‑sale footprints.
PolicyBazar has not issued new guidance; investors await the company’s Q2 filing in October to gauge the full impact of the regulatory changes.