Smaller life and general insurers worry that proposed distribution reforms might benefit larger insurers disproportionately. The changes include lowering expense management limits for both life and general insurers. Smaller insurers are concerned that the aggregate expense cap could limit their competitive ability in retail insurance. Larger insurers may leverage their economies of scale to manage costs more effectively.
Smaller players flag Irdai’s new expense caps
Smaller life and general insurers worry that proposed distribution reforms might benefit larger insurers disproportionately. The changes include lowering expense management limits for both life and general insurers. Smaller insurers are concerned that the aggregate expense cap could limit their competitive ability in retail insurance. Larger insurers may leverage their economies of scale to manage costs more effectively.
Read the full story at Economic Times.
