The IRDAI, India's insurance regulator, will notify final rules by June 2027 that keep a newly proposed 12.5% five-year expense ceiling for life insurers and the 2% cap on lender-sold credit life commissions, despite heavy lobbying from banks, insurers and brokers.

Resistance will be fierce because the pain is acute. Axis Max Life spends 25.1% of premium on expenses, L&T Finance draws about 26% of profit from insurance distribution, and PB Fintech shares fell 38% upon the announcement. Yet the regulator is unlikely to bend, because the proposal is necessary to reverse its mistake and maintain institutional credibility - a 2023 scrapping of product-level commission caps led to a commission explosion. With some insurers like SBI Life and LIC already siting below 12.5%, the industry lobby will also be split. These reforms will take longer than the 4 months required in 2023 between draft and enactment, but should pass by June 2027.