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IRDAI Asks Insurers to Trim Costs for Cheaper Health Cover

26 February 20261 min read
BANKING & FINANCEIRDAI AsksInsurers to TrimCosts for CheaperHealth Cover26 February 2026safalsetu.com

Why in the news

The insurance regulator pressed insurers to cut costs so health covers become cheaper, especially for the missing middle.

Key facts

  • Regulator: IRDAI.
  • Target: the missing middle.
  • Main lever: lower Expenses of Management (EoM).

Directions

DirectionAction
Reduce EoMTrim administrative and distribution costs and commissions
EfficiencyDigital onboarding and claims
InnovationWider “Use and File” for faster launches; simple, affordable covers

Exam angle

  • Terms: missing middle, EoM, Use and File.

Test yourself

1. Which segment is IRDAI's push for cheaper health insurance mainly aimed at?

The notes target the 'missing middle' segment.

2. What does EoM stand for in IRDAI's directions to insurers?

EoM means Expenses of Management, which insurers are asked to reduce.

3. Which system did IRDAI ask insurers to use more to speed up product launches?

The notes mention expanding the 'Use and File' system.

This topic is part of Daily Current Affairs 26 February 2026 (21 topics).

All topics of the dayDay quizFebruary 2026

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