IRDAI remains headless for 2 months after former Chairman's exit

Indian Express

15-05-2025

Over two months after Debasish Panda's tenure as chairman of the Insurance Regulatory and Development Authority of India (IRDAI) ended on March 13 this year, the government is yet to announce a new chief for the top post in the regulatory body.
The government advertised for a new chairman for Hyderabad-based IRDAI, just four days before the end of Panda's tenure. 'Ideally a new chairman should have been appointed on the day Panda retired. Insurance is an important sector. Its chairman should be guiding the sector at a time when the government has allowed 100 per cent FDI in the insurance sector and the government is pushing for 'insurance for all by 2047'. Many of the reforms in the sector are pending for the arrival of the new chairman,' said an insurance sector official.
The insurance sector, which mobilised a whopping Rs 7 lakh crore as premium income in FY25, is a key player in the country's growth since it's a leading investor in the country's capital market and government securities.
The government appointed Sanjay Malhotra as the Governor at the Reserve Bank of India (RBI) in December 2024 and Tuhin Kanta Pandey as the Chairman of the Securities and Exchange Board of India (SEBI) in March 2025 without wasting time and they took over the very next day after their predecessors' tenure ended.
Meanwhile, the government on Wednesday appointed Ratnakar Patnaik, Executive Director (Investment – Front Office) & Chief Investment Officer, and Dinesh Pant, Executive Director (Actuarial) as the Managing Directors of the Life Insurance Corporation of India (LIC), the largest financial institution in the country.
The IRDAI is awaiting its new chairman at a time when health insurance premium is rising sharply in the wake of higher medical inflation and claims. Further, the government is also planning to go for major reforms in the insurance sector and IRDAI has appointed a committee to examine the reforms in the sector.
The non-life insurance sector had reported a gross premium income of Rs 3.07 lakh crore for FY25 and the life sector mobilised Rs 3.97 lakh crore as premium income.
The industry is awaiting the launch of Bima Sugam, announced during Panda's tenure, an ambitious platform aimed at democratising insurance in India, potentially becoming the first of its kind globally. This single-window digital platform will serve as a comprehensive marketplace where consumers can compare, purchase, and manage insurance policies across life, health and general insurance sectors.
As in the case of the RBI and capital market regulator SEBI, the government is likely to consider one of the serving top bureaucrats or a retired person for the IRDAI chairmanship.
While all the selections for the top posts of regulatory bodies are supposed to be done by the Financial Sector Regulatory Appointment Search Committee (FSRASC) headed by the Cabinet Secretary, both the recent appointments – RBI Governor and SEBI Chairman – were done directly by the government without holding any interviews.
Applicants for the IRDAI top post should preferably have at least 30 years of relevant work experience, should have worked as Secretary to Government of India or its equivalent level in Government of India or state government or other institutions. They should have had a proven track record of leadership and authority in decision-making. Applicants from the private sector should have worked as CEO or equivalent of a large financial institution.
The appointment will be made by the Central government on the recommendation of the FSRASC. The committee is also free to identify and recommend, based on merit, any person other than those who have applied for the office. In respect of outstanding candidates, the committee may also recommend relaxation in eligibility, qualifications and experience criteria.