Several insurance companies exceed limit on expenses in FY22: Irdai report

The expense of management of regulations (2016) for life insurers prescribes the allowable limits of expenses of management taking into account the type and nature of product,

In FY22, several insurance companies, both in the life and non-life segment, have exceeded the expense of management limits prescribed by the insurance regulator in its guidelines laid down in 2016, the annual report released by Irdai for 2021-22 revealed.

As far as life insurers are concerned, of the 24 companies, 16 were found to be compliant with IRDAI (Expenses of Management of Insurers transacting life insurance business) Regulations, 2016, but eight life insurers had exceeded the limits of expenses on an overall basis or segmental basis and the same are under examination and consideration for grant of forbearance.

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