Future Generali India has the choice to “reward” its channel partners for building better customer franchise across product categories in different geographies as the insurer is currently compliant with the new expenses of management (EoM) norm.
“We are currently compliant with the EoM regulations,” Future Generali India Insurance managing director and CEO Anup Rau told FE.
Sector regulator Irdai in March imposed a limit of 30% of gross written premium as EoM for general insurers and it became effective from April 1, 2023.
General insurance companies with higher EoM will have to submit plans to the regulator for bringing their expenses of management down to the specified limit of 30%.
Rau said the new norm is a “proactive” move from the regulator as it aims to provide more flexibility to insurers in paying commissions to their agents and intermediaries under the overall cap on EoM.
Putting an overall cap at the company level, Irdai has replaced earlier ceilings on payments of commissions in different lines of business.
According to Rau, as Future Generali India is currently compliant with the revised EoM norm, the company has the choice to reward certain channel partners for better customer franchise that they have built in case it wants. “That option is ours. So, we can do that across products, across geographies, and across categories of distributors.”
The insurer expects to grow its gross written premium at about 20% for this financial year. “We expect to close at Rs 5,200-5,500 crore for this fiscal,” said the MD.
The company, which was set up in 2007, achieved the breakeven in 2014. Italy’s Generali owns 74% stake in the company while Future Group holds 26%.
