Neutral impactSector
Health insurers seek expense cap tweaks
Economic Times 6 hrs ago·29 Oct 2026, 7:57 pm
India's standalone health insurers have petitioned the Insurance Regulatory and Development Authority of India (IRDAI) to exclude mandatory insurance products from expense-of-management (EoM) calculations. Currently, these products are included in the metric, which determines the maximum percentage of premium insurers can spend on overheads like salaries and marketing. The industry argues that including these products distorts their business model and creates an uneven playing field compared to larger, integrated insurers.
This request is significant for the sector as it could lead to new regulations that alter how insurers price their products. If approved, it would allow standalone players to allocate more of their premium revenue to operational costs rather than regulatory caps. This change could improve their profitability and competitiveness. Investors should monitor the IRDAI's final decision on these proposed regulatory tweaks to understand how they might impact the financial performance of health insurers in the coming quarters.
Excerpt from Economic Times
Health insurers seek expense cap tweaks Health insurers seek expense cap tweaks Standalone health insurers have requested that mandatory insurance products be excluded from expense-of-management calculations. They argue that including these products creates an imbalance for their business model. The Insurance…Read the original at Economic Times
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