Go Digit shares declined 2.04% to ₹240 following the broader sell-off in the insurance sector.
The key issue for general insurers is IRDAI’s proposed lowering of EoM levels to 25% within two years and 20% within five years.
For a growing insurer such as Go Digit, investors may be assessing whether tighter expense limits could constrain spending on distribution, technology and expansion.
The paper itself notes that insurers have argued premium-linked expense limits can be restrictive for smaller and mid-sized companies investing in growth.