Smaller life and general insurers are concerned that the Insurance Regulatory and Development Authority of India’s (Irdai) proposed distribution reforms could give larger players an advantage, Times of India reported, as companies with sizeable group businesses may be better placed to absorb costs within the proposed expense limits.
Under the proposed norms, Irdai plans to lower the company-level expense of management (EoM) limit for general insurers to 20% of gross direct premium income over five years. For life insurers, the cap is proposed at 15% in two years, followed by 12.5% or 10% over five years.
