Turtlemint Flags Lower Income For Agents Under Irdai Proposed Commission Curbs, Pushes Beyond Insurance

Insurtech company Turtlemint, which made its stock market debut in June, said the Insurance Regulatory and Development Authority of India’s (IRDAI) proposed commission curbs will result in lower incomes for both its insurance agents and point-of-sale persons (PoSPs)

On average, a PoSP will earn Rs 1,000 less per month than an agent if both sell the same number of policies, said Dhirendra Mahyavanshi, co-founder and CEO of Turtlemint, during the Q2 analysts’ call.

“We have mapped the earnings of our PoSPs. The income as a percentage is going to be reduced for both for the agent and the PoSP. The differential on an average basis, on a monthly basis, could come to about INR 1,000 per month for a PoSP versus an agent if they are doing the similar volume,” said Mahyavanshi.

However, lower earnings could be offset by selling more policies and other financial services products, he added.

In sharp contrast, Turtlemint’s listed peer PB Fintech, which operates the insurance marketplace Policybazaar, said IRDAI’s proposed insurance reforms have raised a question mark over the long-term viability of the PoSP business, given that the entire model revolves, to some extent, around commissions.

“Our view is that a significant set, significant cohort of the PoSPs will continue to be multi-brand, multi-category. In fact, that is the only viability now from an insurance distribution option point of view. If you are doing all solutions for a customer is when you will be able to generate enough to be able to serve and get your income,” said Turtlemint’s CEO.

A PoSP is permitted to distribute retail insurance products such as bike, car and health insurance, subject to prescribed limits in certain product categories. An insurance agent, however, can sell the full range of insurance policies without such restrictions.

IRDAI has proposed the reintroduction of product-level commission caps on insurance distribution, which were removed in 2023, along with a phased reduction in insurers’ expenses. Read our full reportage on IRDAI’s proposed insurance reforms here.

With insurance distribution margins expected to take a hit once the rules are finalised, Turtlemint is looking to diversify beyond insurance.

“The document proposes multiple products could be distributed, and we can generate income beyond insurance. That simplifies things for us. We were already offering mutual funds and loans. Now this is, we can push the pedal on that,” Mahyavanshi said.

Rival PB Fintech has similar plans, centred on expanding PB Pay and PB Care+, along with a potential foray into insurance manufacturing.

Turtlemint financial snapshot Q2

Turtlemint managed to trim its consolidated net loss to Rs 25.8 crore in the second quarter (Q2) of the financial year 2026-27 (FY27), helped by strong revenue and premium growth. The company had reported a loss of Rs 78.5 crore in the corresponding quarter last year, according to its financial statements filed with the NSE.

Sequentially, losses declined 32% from Rs 37.8 crore in the preceding June quarter.

Revenue from operations surged 35% to Rs 342.2 crore during the quarter under review, from Rs 252.8 crore in Q2 FY26. On a quarter-on-quarter basis, it rose 16% from Rs 295 crore in Q1 FY27.

Turtlemint also earned other income of Rs 9.5 crore in Q2 FY27, mainly from interest on its investments, taking its total income to Rs 351.7 crore.

In its investor presentation, the insurance distributor said its EBITDA loss narrowed to Rs 17 crore in Q2 FY27, compared with an EBITDA loss of Rs 40 crore in the same quarter a year ago.

Key operational updates Q2

During the analysts’ call, Turtlemint said its business continued to scale beyond the top 30 cities, which remain the core of its insurance distribution model. Platform premium stood at Rs 1,214 crore during the September quarter, up 55% year-on-year (YoY).

Meanwhile, renewal commission revenue surged 41% YoY to Rs 71 crore in Q2 FY27.

“Q2 FY27 has been another quarter of consistent delivery. Platform premium grew 55% YoY and revenue from operations rose 35%, underlining the depth of the distribution network we have built over the years,” said Mahyavanshi and co-founder and COO Anand Prabhudesai in a joint statement.

Platform premium refers to the total payments, excluding GST, received on insurance policies issued or renewed by insurance companies through Turtlemint’s platform. Renewal commission revenue refers to the commission earned on renewed policies.

Turtlemint recruited 37,000 Digital Partners in Q2 FY27, expanding its insurance agent base to 728,138 as of September 2026. The company claims to have sold 3.4 million policies in the first six months of FY27.

Digital Partners are users who have registered on the Turtlemint platform to distribute insurance and other financial products and have completed their KYC. This category also includes PoSPs who have completed mandatory training and obtained certification to distribute insurance products.

Quarterly active DPs stood at 93,000 in Q2. An active DP refers to an agent or a PoSP who sells at least one policy during a particular period.

Where did Turtlemint spend in Q2?

Revenue growth outpaced the rise in expenditure. Turtlemint’s expenses grew 25% to Rs 375.2 crore in July-September 2026, from Rs 299.8 crore in the corresponding period last year.

• Employee benefits expense: The online insurance distribution platform spent Rs 64.2 crore on employee remuneration and other staff-related expenses in Q2 FY27, up 4% from Rs 61.6 crore in Q2 FY26.
• Other expenses: These surged 30% to Rs 301.7 crore during the quarter under review, from Rs 232.4 crore in the year-ago period. The company did not provide a breakdown of these expenses.

Also read:

• IRDAI’s insurance overhaul pushes PB Fintech to non-insurance services
• PB Fintech Q2: Profit jumps 43% to Rs 192 cr, revenue at Rs 2,178 cr

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