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The Indian insurance regulator has allowed Insurers an overall limit on expenses of management (EOM) by removing the individual cap on payments of commission for insurance products. As per the IRDAI (payment of commission) regulations, all life and non-life insurers (general and standalone health insurers) will be able to manage their expenses within the overall limits defined by their gross written premium.

Becoming operational with effect from 1st April 2023, regulations will be reviewed once every three years. It will help insurers to utilize their resources in an optimal manner and extend benefits to the policyholders. Insurance agents will be encouraged to explain policy features and sell insurance products to consumers, increasing insurance penetration in India.

Non-life insurance companies in India are linking the premium rates for fire insurance policies to the claims record, doubling the insurance price for those with reported claims of more than three times the premium paid. This linkage will enable companies to offer discounts to customers with good track record, as claims in property insurance are less frequent.

Industry experts are of the opinion that it is due to the IRDAI’s directive to not to treat the premium rates published by the insurance information bureau as minimum rates.

A high-intensity earthquake measuring 7.8 on the Richter scale devastated parts of Turkey and Syria on 6th February 2023. More than 33,000 people have died and innumerable losses on the economic front. Not just overall economic losses, it is very difficult to predict the economic losses which could have been covered with insurance, as on ground situation becomes clear. This earthquake has caused an estimated insurable economic loss of more than $ 4 bn, impacting the insurance sector.

Many structures and buildings in the region have been completely destroyed, with a good size of the population residing in temporary shelters or buildings prone to earthquake tremors. The Turkish Catastrophe Insurance Pool (TCIP) covers only residential buildings in the urban region, excluding commercial properties and loss of life.
Despite mandatory earthquake insurance cover, many residential properties are not insured, due to affordability. Presently, around 10.8 mn (53.90%) of about 20 mn residential properties in Turkey are covered for earthquake risk.
With insurable economic losses from the Turkey-Syria earthquake touching $ 4 bn or even more, the reinsurance part of TCIP could provide a little over $ 2 bn protection.

Further, local and international commercial insurers which provide insurance to industrial clients, for damaged factories and infrastructure like airports and ports are also majorly reinsured. The extent of claims is estimated to be insignificant for the global reinsurance market.