India Bars Niva Bupa From Opening New Branches for Six Months

India’s insurance regulator has barred Niva Bupa Health Insurance from opening new places of business for six months after the insurer breached prescribed limits on management expenses during the 2024-25 financial year. The expenses include operating costs and commissions paid to agents and distributors.

Niva Bupa, backed by UK-based healthcare group Bupa, said it complied with the expense rules in fiscal 2025-26 and expects to remain compliant in the current financial year. The company’s shares closed 1.3% lower following the announcement.

India’s insurance sector has faced rising distribution costs amid intensifying competition, with commissions increasing across the industry. The regulator is reviewing distributor compensation rules to address high costs and curb mis-selling, while health insurers are required to keep expenses within 35% of gross written premiums in a financial year.

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