Full Capacity: India’s commission caps could prove costly for brokers

November 7 2026 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.    

IAN exclusive. Global insurance broker Lockton is preparing to enter Japan’s broking market through a partnership with domestic broker Kyoritsu Insurance Brokers, the in-house broking arm of Mizuho Financial Group. It is already Lockton’s partner in Japan under the Lockton Global Partnership. 

Data centre facility. An industry consortium has joined forces to launch a US$200 million Singapore-based data centres facility, covering risks across construction, operational, supply chain, design and cyber risks.  

The founding group comprises MSIG, Gallagher Re, Scor, Samsung Re and the Cybersecurity Association Singapore. 

Increasing oversight. The Hong Kong Insurance Authority is reviewing its guidelines for asset-intensive reinsurance transactions.  

An industry consultation has been completed on proposed changes to the regulatory framework. The revised guidelines are expected to take effect in 2027. 

Specialist capacity. The Fidelis Partnership (TFP) has launched a Lloyd’s service company, TFP Asia Pacific. The Singapore-based business will be led by former Volante Global executive Bilal Zafar as CEO. InsuranceAsia News had first reported on TFP’s regional plans back in May. 

Meanwhile, Munich Re Specialty has formally launched in Australia with the newly built Sydney team led by Chris Mackinnon commencing underwriting. 

SIRC in focus. Last week, the InsuranceAsia News team was in Singapore covering the region’s premier reinsurance gathering, the Singapore International Reinsurance Conference (SIRC). 

We spoke with regional CEOs and senior leaders from nearly all the leading reinsurers and reinsurance brokers, gaining insight into how the 2027 renewal dynamics are taking shape. We also secured exclusive interviews with newer market entrants and their plans for Asia. 

Explore all our coverage, including day-by-day updates, on our SIRC hub, or browse the full archive on our website. For the big-picture view, read our key takeaways. 

… paved with good intentions

SIRC remains one of the best places to take the pulse of the forces shaping not only the reinsurance market, but the broader insurance industry. 

Amid the usual discussions on renewals, rates, structures, capacity and data centres, there was considerable anxiety among the Indian delegation over the insurance regulator’s proposal to reintroduce hard commission caps. 

The consensus among the dozen or so Indian brokers I spoke to was that the Insurance Regulatory and Development Authority of India is in no mood to back down, despite the industry’s objections.  

Though they do expect some concessions from the regulator, one notable expectation was that the implementation timeline will move from January 1 to the financial year beginning April 1, which will help brokers to book their renewals and business for the coming year by March 31. 

For many smaller direct brokers, the concern is existential, with some reporting early layoffs and others actively weighing job cuts. 

There is also concern that some of the international brokers that are still trying to establish a meaningful presence in India could find the economics of operations less appealing. 

Some direct brokers are now assessing whether they can obtain composite broking licences, particularly because the reinsurance broking market has so far been spared the curbs.  

Even so, some noted that reinsurance brokers cannot afford to be complacent: the proposals could still affect tailored programs where direct and reinsurance elements intersect. 

Few dispute the regulator’s underlying intent. The proposals are designed to curb misselling and, in some cases, exorbitant broking fees.  

Many brokers acknowledge the need for regulatory action and accept that a rebalancing is needed.  

So do carriers: as one senior reinsurance executive observed, in certain proportional treaties, brokers earn more than the risk carriers themselves, an imbalance that is difficult to defend. 

But the value of intermediation, especially in corporate risk transfer, cannot and should not be overlooked. Sophisticated buyers need independent advice, market access, advocacy at claim, and help navigating increasingly complex exposures and placement. 

The experience of Japan is instructive. A shortage of well-resourced intermediaries and risk advisers contributed to a market in which carriers effectively fixed prices, prompting the regulator to intervene to promote broking. 

India risks moving in the opposite direction. 

People moves

QBE Insurance has promoted Leanne Nel to Pacific CEO, succeeding Jonathan Groves. 

Katsuya Kobayashi has joined Allianz Commercial Japan as its new head of marine, 

Tokio Marine Kiln has appointed Jaci Eng and Jon Grossman as co-heads of APAC property. 

Specialty MGA Optio has chosen Canopius’ Jamie Jeffers to lead Asia Pacific expansion efforts. 

Willis Re continues to build its Asia team with Kevin China and Shinick Kim joining in Singapore. 

Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region.

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