Exposure Draft

Ref. No:                                                                                                          Date:_________

EXPOSURE DRAFT - INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (EXPENSES OF MANAGEMENT OF INSURERS TRANSACTING LIFE INSURANCE BUSINESS) REGULATIONS, 2022

1.    The Authority is in receipt of requests to review the Regulations from the stakeholders. Therefore, the current regulations on Expenses of Management for Life insurers have been reviewed. Some of the key changes being proposed in the regulations are: -

·         Compliance with limits of Expenses of Management (EoM) to be on an overall, aggregated basis for Par, Non-Par and Linked business and not on segmental basis;

·         Discontinuation of the provisions for seeking forbearance for non-compliance on segmental basis;

·         Additional allowance for insurers with duration of business up to 10 years;

·         Additional allowances for incremental Rural sector and the specified schemes;

·         Additional allowances towards expenses incurred on Insurtech, implementation of Ind AS and Insurance Awareness;

·         Board approved policy on EoM to be the basis for compliance; and

·         Rationalization of the other compliance requirements.

2.    The exposure draft of IRDAI (Expenses of Management of Insurers Transacting Life Insurance Business) Regulations, 2022, is attached as Annexure – A.

3.    All the stakeholders are requested to forward their comments / suggestions, if any, on the proposed regulations in the attached format (Annexure- B) on or before 5:00 PM on 23^rd August, 2022 to finance-life@irdai.gov.in with a copy to shardul@irdai.gov.in