Irdai pulls up life insurers for under-reporting operating expenses

The Insurance Regulatory and Development Authority of India (Irdai) has pulled up life insurers for under-reporting operating expenses and asked them to adhere to the specified format for presentation of financial statements.

The insurance regulator has asked life insurers to disclose operating expenses incurred during a period in entirety in their revenue account.

The regulator, in 2016, had set a limit for managing expenses of life insurers and the excess expenses incurred by the insurers beyond the permissible limit is supposed to be charged to shareholder account (the profit or loss account).

However, the regulator has observed that some insurers were under-reporting operating