IRDAI: Policies Must Tag Authorised Seller From 2027

From January 2027, every insurance policy must clearly identify the authorised seller who distributed it. This applies across all lines of insurance and covers intermediaries such as advisors, brokers, and POSPs. The directive comes as part of broader updates to insurance intermediary regulations.

The regulator is introducing this requirement to improve traceability and accountability in distribution. By linking the policy directly to the seller, IRDAI aims to reduce mis-selling and make it easier to track responsibility when issues arise post-sale.

For advisors and brokers, this means your name or your firm's name will appear on the policy document or its digital equivalent. This shifts the focus toward maintaining clean records and ensuring that all sales are properly documented and attributable. It also means that any lapse in advice or conduct will be directly visible on the policy itself.

You should review your current documentation and distribution workflows to ensure you can comply with this tagging requirement by the deadline. Speak with your insurer or platform provider to understand how the seller tagging will be captured in your existing systems and processes. If your current tools do not support this, begin planning upgrades or alternative workflows now.

Details on the exact technical implementation remain sparse in the public domain. Until insurers issue formal operational guidelines, await official communication from your company and avoid making assumptions about system changes. Start preparing your records and compliance checks in the meantime.

IRDAI has also deferred the consultation paper on commission regulations to late August, so do not expect immediate changes to commission structures alongside this seller tagging rule. Focus your immediate attention on the January 2027 policy tagging requirement.

Source: Outlook Money, financialexpress.com, India Today, Livemint, Moneycontrol.com, current week