The Insurance Regulatory and Development Authority of India (Irdai) has issued an exposure draft on Expenses of Management (EoM) for both life and non-life insurance companies. The draft, based on recommendations from the Regulation Review Committee (RRC), suggests a 30% and 35% limit on EoM for general insurers and standalone health insurers, respectively. It revises the limits for various policy categories, introducing flexibility for insurers to manage expenses and commissions. The new regulations are anticipated to be effective from April 1, 2024, after a feedback period for stakeholders until December 6, 2023.
Irdai Releases Exposure Draft on Insurance Companies’ Expenses Management
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