Q4 · UPSC current affairs · 16 October 2026 · News · IRDAI Expense of Management Norms for Insurers

← Q3 Q5 →

Which of the following terms best describes the total operating costs incurred by an insurer, including administrative expenses and commission payouts?

A Expenses of Management
B Premium Subvention
C Expense Ratio
D Solvency Ratio

Correct answer: (a) Expenses of Management

Explanation

Expenses of Management refers precisely to the total operating costs incurred by an insurer, including administrative expenses and commission payouts. Expense ratio is a percentage metric, solvency ratio assesses capital buffers, and premium subvention is unrelated to insurer operational overheads.

PDF