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Start learning 50% faster. Sign in nowThe Insurance Regulatory and Development Authority of India (IRDAI) has introduced new regulations on commission payments to intermediaries and expenses of management for general and health insurance companies. While the Payment of Commission Regulations, 2023, removes previous caps on payments, the Expenses of Management (EOM) Regulations, 2023, allows for additional expenses related to foreign and IFSC branches, Insurtech, and insurance awareness. The new regulations issued by the Insurance Regulatory and Development Authority of India (IRDAI) will be effective from April 1. Under the EOM Regulations, 2023, general insurance companies can work with EOM up to 30% of gross premium written, while insurers carrying on standalone health insurance business are allowed to go up to 35% of gross premium written. The objective of these regulations is to provide the insurers the flexibility to manage their expenses based on their growth aspirations and the ever-changing insurance needs with an objective to improve insurance penetration.
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