Highlights and implications of IRDAI’s expense of management notification, and guidance note on commission
Insurance regulator (IRDAI) made a number of announcements over the past week. Key features: (1) introduction of an overall ‘expense of management’ (EOM) limit in life as well as non-life insurance with no sub-limits on commission; (2) introduction of the insurer’s Board policy on commission structure including distribution fees to motor insurance service providers.