Insurtech company Turtlemint has projected that the Insurance Regulatory and Development Authority of India’s (IRDAI) proposed commission caps will significantly reduce the monthly income of its point-of-sale persons (PoSPs). According to a report by MediaNama, Dhirendra Mahyavanshi, the co-founder and chief executive officer, stated during the second-quarter analysts’ call that PoSPs would earn roughly Rs 1,000 less per month than insurance agents selling the same volume of policies. This disparity arises because PoSPs are restricted to distributing only retail insurance products, whereas agents can sell the full range of policies without such limits.
The regulatory body has proposed reintroducing product-level commission caps on insurance distribution, which were previously removed in 2023. MediaNama reported that these measures are part of a broader plan to phase down insurers' expenses. While Mahyavanshi acknowledged the income reduction, he suggested that lower earnings could be offset by increasing policy sales volume and diversifying into other financial services. He noted that the proposed document allows for the distribution of multiple products, which simplifies the path for generating income beyond traditional insurance.
In response to the regulatory changes, Turtlemint is accelerating its strategy to diversify beyond insurance. The company, which already offers mutual funds and loans, intends to expand these offerings to maintain revenue stability. This move mirrors the strategy of rival PB Fintech, which operates the insurance marketplace Policybazaar. MediaNama reported that PB Fintech has expressed concerns about the long-term viability of the PoSP business model under the new reforms, noting that agents must become multi-brand and multi-category to survive. PB Fintech is similarly focusing on expanding its payment and healthcare services.
Financially, Turtlemint reported a consolidation of its losses in the second quarter of the 2026-27 financial year. The company trimmed its net loss to Rs 25.8 crore, a significant improvement from the Rs 78.5 crore loss in the same period last year. Revenue from operations surged 35% to Rs 342.2 crore, driven by strong premium growth. The platform premium, which represents total payments received on policies issued through the platform, grew 55% year-on-year to Rs 1,214 crore. The company also recruited 37,000 Digital Partners in the quarter, bringing its total agent base to over 728,000 as of September 2026.