PB Fintech and Turtlemint shares plunge 20% on proposed insurance commission cuts

Shares of PB Fintech and Turtlemint plunged 20% on September 24 after India's insurance regulator proposed sweeping changes to distribution commissions, potentially cutting their earnings by 10-12%. The Insurance Regulatory and Development Authority of India's consultation paper proposes capping commissions, linking them to product complexity, and spreading life insurers' payouts beyond the first year. PB Fintech faces sharp cuts in health renewal, porting, and motor insurance commissions. The regulator also proposes banning compulsory insurance bundling with credit, capping bank commissions at 2-5%, and limiting health renewal commissions to 5-10%. Feedback is sought until October 25 before finalization.