Shares of PB Fintech, the parent company of Policybazaar, fell sharply on September 24, declining as much as 32% to ₹1,282.30 amid concerns over proposed changes to insurance distribution commissions.

The selloff followed IRDAI’s consultation paper on recalibrating the economics of insurance distribution. Analysts said the proposed changes could reduce commissions across several insurance categories and put pressure on distributors such as PB Fintech.

Jefferies estimated that a 10% reduction in new-business commission rates could translate into a 10–12% decline in distributor earnings. Emkay Global also flagged potential pressure from lower health renewal and porting commissions, term-life commissions and motor insurance commissions.

The proposed framework includes significant changes to commission structures, including caps for products such as credit life, motor third-party insurance, motor own-damage and health insurance, according to brokerage analysis.

PB Fintech had 1,42,294 individual investors holding shares worth up to ₹2 lakh as of June 30, according to shareholding data.

Brokerage views remain mixed. Bernstein and Macquarie retained positive ratings with targets of ₹2,310 and ₹1,950, respectively. Nomura assigned a Neutral rating with a ₹1,590 target, while Ambit Capital maintained a Buy rating with a ₹2,305 target.

Analysts are now awaiting greater clarity on the final regulatory framework and its impact on insurance distribution economics.