IRDAI's New Committee on Regulatory Framework
The Insurance Regulatory Development Authority of India (IRDAI) has set up a seven-member committee to evaluate and enhance its regulatory framework amid significant proposed changes in the sector.
Composition and Leadership
- The committee is led by Dinesh Khara, former chairman of the State Bank of India.
- Members include:
- NS Kannan - former CEO of ICICI Prudential Life Insurance
- Sourav Sinha - former executive director of the Reserve Bank of India
- Girish Radhakrishnan - ex-chairman and managing director of United India Insurance Company
- Alok Mishra - MD and CEO of MFin
- Rakesh Joshi - former whole-time member of the IRDAI
- Legal expert L Vishwanathan
Objective and Timeline
The committee aims to:
- Reassess various aspects of the current regulatory framework.
- Recommend essential adjustments and enhancements.
- Submit its report within three months.
Context and Importance
This initiative coincides with the government's preparation to introduce an Insurance Amendment Bill aimed at increasing foreign direct investment (FDI) in the insurance sector to 100%.
Post-Report Actions
- Post recommendations, IRDAI will submit proposals to the finance ministry.
- The Department of Financial Services will draft a new bill for stakeholder feedback.
Industry Implications
The committee's recommendations are crucial as the insurance industry is experiencing significant changes, including the introduction of composite licenses for insurers. These developments are anticipated to have a substantial impact on the future of the insurance sector in India.