Insurance Stocks Crash As IRDAI Proposes Lower Expense Limits, Commission Curbs And Dark Pattern Ban

Insurance stocks came under heavy selling pressure on September 24 after the Insurance Regulatory and Development Authority of India (IRDAI) released a consultation paper that proposes tighter commissions, lower Expense of Management (EoM) limits and a ban on "dark patterns" on insurance websites.

PB Fintech was the biggest casualty, falling 26.01 per cent to Rs 1,395.70 from its previous close of Rs 1,886.30. Max Financial Services declined 11.25 per cent to Rs 1,387.10, while HDFC Life Insurance fell 5.17 per cent to Rs 532.70. ICICI Prudential Life Insurance tumbled 3.34 per cent to Rs 468.30 and Niva Bupa Health Insurance declined 2.88 per cent to Rs 77.86.