Archive · 18 Dec 2025
Insurance Bill and GST Changes Impact PB Fintech
PB Fintech, which owns Policybazaar.com, is facing two big challenges.
First, changes in GST rules have made it more expensive for insurance companies, and they might pay less commission to Policybazaar.com.
Second, a new insurance bill could limit how much insurance companies pay in commissions.
This could hurt Policybazaar.com, which makes up most of PB Fintech's money.
If both happen, PB Fintech might make less money, and its stock has already dropped by 7%.
However, if insurance companies pass on the savings to customers, PB Fintech might actually earn more from higher premiums.
Investors are worried because the company is already expensive compared to others like Paytm.
The insurance industry paid about ₹1 lakh crore in commissions in FY25, and the new bill could make it harder for companies to use these commissions to grow their business.
PB Fintech's stock fell 7% due to concerns over the Insurance Amendment Bill 2025 and GST changes on insurance premiums.
The Insurance Bill may empower IRDAI to cap insurance companies' commission expenses, affecting Policybazaar.com's revenue.
Policybazaar.com contributes 89% of PB Fintech's core online business revenue, with a 16% commission rate in Q2FY26.
A 100 basis points decline in commission rate could lead to a ₹220 crore revenue loss for FY27.
The insurance industry paid about ₹1 lakh crore in commissions in FY25, with life insurers paying around 6% and non-life insurers paying about 13% of premium income as commissions.
- Who
- PB Fintech Ltd, Insurance Regulatory and Development Authority of India (IRDAI), HDFC Life, SBI Life
- What
- Potential impact of the Insurance Amendment Bill 2025 and GST changes on PB Fintech's business
- When
- GST changes effective from 22 September, Insurance Bill implementation timeline not specified
- Where
- India
- Why
- GST changes increase costs for insurers, Insurance Bill may cap commission expenses
Investors and Analysts
Insurance Companies and Distributors
Commission Caps
Investors and Analysts
Investors are concerned about the potential revenue loss due to commission caps, which could significantly impact PB Fintech's earnings.
Insurance Companies and Distributors
Insurance companies and distributors argue that commission caps could limit their ability to incentivize sales and grow their business.
GST Changes
Investors and Analysts
Investors worry that the increase in GST on insurance premiums will reduce the commissions paid to distributors like Policybazaar.com.
Insurance Companies and Distributors
Insurance companies believe that passing on the cost to customers could help maintain their margins and commissions.
- Company
- PB Fintech Ltd
- Stock Impact
- 7% fall in two trading sessions
- Key Business
- Policybazaar.com (89% of revenue)
- Revenue Growth
- 37% YoY for Policybazaar.com
- Commission Rate
- 16% in Q2FY26
- PEG Ratio
- 1.6x (FY27 estimate)
- Potential Revenue Loss
- ₹220 crore if commission rate declines 100 basis points
- Total Commissions
- ₹1 lakh crore in FY25
- Commission Ratios
- 6% for life insurance, 13% for non-life insurance in FY25
