Probable reason for the expenses increasing by 50% over the previous year could be the increase in salary costs and pension arrears in PSU’s as a result of their wage settlements.

Chart 3.6.1Expenses of Management

Source: IRDAI Annual Reports for prior years and Public Disclosures of companies for 2021-22

As per IRDAI (Expenses of Management) Regulations for non-life and health companies, amounts incurred as Expenses of management over and above the prescribed limits have to be borne by the Shareholders.

Chart 3.6.2Policyholder Expenses borne by Shareholders