IRDAI issues regulations for insurers’ ease of doing business

It targets to move towards a principles-based regime.

The Insurance Regulatory and Development Authority of India (IRDAI) has issued the IRDAI (Expenses of Management, including commission, of insurers) Regulations, 2023. This comes as part of the regulatory body's efforts to enhance the ease of doing business and simplify regulations, moving towards a principles-based regime. 

The new regulations replace the Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting General or Health Insurance Business) Regulations, 2023; Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting Life Insurance Business) Regulations, 2023; and Insurance Regulatory and Development Authority of India (Payment of Commission) Regulations, 2023. 

The goal of the new rules is to provide insurers with flexibility in managing their expenses, including commissions, within specified limits, optimising resources for the benefit of policyholders and improving insurance penetration