LIC, SBI Life clear a cost line as IRDAI draws another

Nifty22, 780.25-360.25. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• Insurers like Life Insurance Corp and SBI Life need to improve cost efficiencies under new regulatory guidelines.
• Mumbai: Insurers such as Life Insurance Corp (LIC) and SBI Life.
• The Economic Times daily newspaper is available online now.

What happened

Nifty22, 780.25-360.25. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now. IRDAI pushes LIC, SBI Life to seek further cost efficiency. IRDAI pushes LIC, SBI Life to seek further cost efficiency. ET BureauLast Updated: Sep 28, 2026, 11: 54: 00 PM IST.

Insurers like Life Insurance Corp and SBI Life need to improve cost efficiencies under new regulatory guidelines. The proposals suggest lowering the expense of management limit from around 16% to 12.5% within five years. While larger insurers are compliant, they must reduce their efficiencies further. Smaller players might gain market share if they enhance their operations as well. In practice, the overall goal is to growth efficiency and value for policyholders.

Mumbai: Insurers such as Life Insurance Corp (LIC) and SBI Life. It already operate below the proposed expense of management (EOM) limits, should additionally seek further cost efficiencies, IRDAI chairman Ajay Seth stated. Both insurers broadly operate within the thresholds proposed by the regulator. If an insurer can operate at 12% EOM, there is scope for further improvement to bring it below 10%, he remarked, adding that smaller insurers could improve efficiency and overtake larger, established players.

The bottom line

For now, LIC, SBI Life clear a cost line as IRDAI draws another remains the part of the story worth watching, and further updates are likely as more details are confirmed.