Archive · 9 Oct 2026
Canara HSBC Life Expects Credit Life to Withstand Proposed Commission Cuts
India’s insurance regulator has suggested reducing the commissions paid for selling credit life insurance.
Canara HSBC Life’s chief executive, Anuj Mathur, said he does not expect this to shrink the company’s credit life business.
He thinks lower costs might make the insurance more affordable and help the company sell more policies.
He expects the company’s shareholder banks to continue supporting sales.
The regulator is still asking stakeholders for feedback, so the final commission limits could change.
The proposal would also stop lenders from making insurance a condition for approving a loan.
Canara HSBC Life reported higher premiums in the first half of FY27 than a year earlier.
Its board also approved raising ₹287.5 crore through a debt issue.
Managing director and CEO Anuj Mathur said the proposed commission reforms are unlikely to reduce Canara HSBC Life’s credit life business.
The insurer expects lower costs could make credit life products more affordable and help expand sales volumes, including through its shareholder banks.
Irdai has proposed capping first-year credit life commissions at 2.5% of premiums and renewal commissions at 1%, and barring insurance from being tied to loan approval.
In H1 FY27, total premiums rose 17.3% year on year to ₹4,742 crore, while annualised premium equivalent increased 14.4% to ₹1,250 crore.
The board approved raising ₹287.5 crore through privately placed non-convertible debentures; the solvency ratio was 180%, against a 150% regulatory minimum.
- Who
- Canara HSBC Life Insurance and its managing director and CEO, Anuj Mathur; the proposals are from the Insurance Regulatory and Development Authority of India.
- What
- Mathur expects limited impact on credit life business from proposed commission reforms; the insurer also reported H1 FY27 results and approved a ₹287.5 crore debenture issue.
- When
- The comments were made during the second-quarter and H1 FY27 earnings call; the company reported results for H1 FY27.
- Where
- India.
- Why
- Mathur expects shareholder banks to continue supporting distribution and believes lower costs could make credit life products more affordable; the proposed reforms aim to set tighter commission caps and prevent insurance being linked to loan approval.
Company’s outlook
Regulatory proposal
Effect of lower commissions on credit life
Company’s outlook
Mathur said he does not expect credit life business to decline and sees scope for more sales if lower costs make products more affordable.
Regulatory proposal
Irdai’s proposal would sharply reduce commission caps for credit life products; the article does not report a regulator’s forecast of the effect on sales.
Final commission rates
Company’s outlook
Mathur said the final rates could be slightly higher than those proposed after Irdai receives stakeholder feedback.
Regulatory proposal
Irdai’s consultation paper proposes specific lower caps, including 2.5% for first-year credit life commissions and 1% for renewals.
- Proposed first-year credit life commission cap
- 2.5% of premium, compared with a current average of around 8% and a maximum of 14%
- Proposed renewal commission cap
- 1%, compared with a current maximum of 38%
- H1 FY27 total premiums
- ₹4,742 crore, up 17.3% year on year
- H1 FY27 new business premiums
- ₹1,984 crore, up 16%
- H1 FY27 renewal premiums
- ₹2,758 crore, up 18%
- H1 FY27 annualised premium equivalent
- ₹1,250 crore, up 14.4%
- Debenture issue approved
- ₹287.5 crore through non-convertible debentures on a private placement basis
- Solvency ratio
- 180%, compared with the regulatory minimum of 150%