Expenses of Management on an overall basis declined from ₹42,940 Crores in FY 2023-24 to ₹40,788 Crores in FY 2024-25. A probable reason for the decline in the expenses of management as compare to the previous year could be due to the change in the regulations bought by IRDAI regarding the expenses of management.
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. These amounts have also come down significantly in the last 2 Financial Years, thereby indicating control over expenses of management by the industry.