Health insurers ask IRDAI to tweak expense-cap rules
In short
Standalone health insurers have asked that mandatory insurance products be left out of expense-of-management calculations. The request was reported as IRDAI considers changes to the rules and limits, including product-wise commission caps.
This could change how health insurers are judged on costs and commissions. The reporting does not say whether IRDAI will approve the request or when any decision will come.
What the reporting says
Standalone health insurers have asked that mandatory insurance products be excluded from expense-of-management calculations, according to a publisher summary. They say including those products creates an imbalance in their business model, while IRDAI is considering changes to EoM regulations, limits and product-wise commission caps. The immediate consequence is a possible rewrite of cost rules for health insurers, but no final decision is stated in the available reporting.
Why it matters
Standalone health insurers have asked IRDAI to change how expense-of-management calculations are done, with mandatory insurance products excluded from the formula. The reported aim is to remove a business-model imbalance and create a more even competitive setting. IRDAI is said to be reviewing EoM regulations, limits and product-wise commission caps. What is unknown is whether the regulator will accept the request or what the final rules will be.