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IRDAI Expense Compliance Soars: 21 Insurers Meet Limits in FY26 Amidst Stricter Scrutiny
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Moneycontrol•23-09-2026, 11:44
IRDAI Expense Compliance Soars: 21 Insurers Meet Limits in FY26 Amidst Stricter Scrutiny
- •Compliance with IRDAI's expenses of management (EOM) limits significantly improved in FY26, with 21 insurers meeting prescribed limits, up from 14 in FY24.
- •Nearly three-fourths of the 29 tracked insurers were compliant in FY26, compared to about half in FY24, driven by intensified regulatory scrutiny.
- •All five standalone health insurers with public data met EOM limits in FY26, a sharp rise from just one in FY24.
- •The Sabka Bima Sabki Raksha Act, 2025, grants IRDAI powers to set limits on commissions and remuneration, signaling further regulatory changes.
- •Despite overall improvement, the weighted average EOM-to-gross written premium ratio for private general insurers remained slightly above the 30% ceiling at 30.4% in FY26.
Key Questions Answered
In FY26, 21 insurers met the prescribed expenses of management (EOM) limits, showing a sharp improvement from 14 insurers in FY24.
The Sabka Bima Sabki Raksha Act, 2025 gives IRDAI the power to specify limits on commissions, remuneration, and rewards payable to insurance agents and intermediaries.
All five standalone health insurers for which data was publicly available met the prescribed limits in FY26, compared to just one in FY24.
