Health insurers seek expense cap tweaks
Standalone health insurers have requested that mandatory insurance products be excluded from expense-of-management calculations. They argue that including these products creates an imbalance for their business model. The Insurance Regulatory and Development Authority of India is considering changes to EoM regulations and limits. Insurers believe that the exclusion would help provide a more…
Mumbai-based standalone health insurers want changes to how expense-of-management (EoM) limits are calculated, proposing that certain mandatory products be excluded from the base. Nilesh Kambli, CFO of Star Health, an India's leading standalone health insurer, made the point that government health business and motor third-party business, which are mandatory, should not be included in the calculation base.
This is because there is no intermediary involved in these businesses and their premiums could give general insurers an advantage under the proposed common framework. This move is part of Irdai's feedback on proposed changes to EoM regulations.
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- Health insurers seek expense cap tweaks economictimes.indiatimes.com
