Some of the names who are belived to have applied for the post of GIC Re CMD include, Rajeev Singh, Head Reinsurance and corporate marketing, Digit Insurance, promoted by Prem Watsa and Kamesh Goyal. and Mandakini Balodhi, one of directors in Department of Financial Services
New Delhi/Hyderabad:The FSIB, the government’s head hunting agency for the senior officials(executive directors, CMDs and CEOs) of public sector financial institutions, for the first time,is now getting ready to interview a few private sector candidates, along with officials from the PSU general insurance companies, for selecting a new GIC Re CMD.
Earlier, the FSIB had issued public advertisement, seeking applications from both PSU and private sector candidates, for the post.
After N Ramaswamy retired from the job on Sept 30, the Appointments Committee of Cabinet(ACC} had decided to throw open the post for the private sector professionals along with PSU candidates as the government thinks there are shortage of talents in PSU general insurance industry to manage these large companies.
Though, it is not exactly known how many private sector candidates have applied for the post(the last date for application was Dec1), New Delhi grapevine is agog with couple of names, who have applied for the post and various lobbies are at work now to see their candidates as the next GIC Re CMD.
Particularly,two names which are doing the rounds are- Rajeev Singh, Head Reinsurance and corporate marketing, Digit Insurance, promoted by Prem Watsa and Kamesh Goyal. and Mandakini Balodhi, a deputy general manager of Oriental Insurance Company, who is now on a deputation to the Department of Financial Services(DFS) and is one of the directors in the department.
Balodhi is also currently the government’s nominee director in state owned National Insurance Company.
Asia Insurance Post hasn’t been able to confirm independently if these candidates have applied for the GIC Re CMD post.
From the PSUs, going by the new eligibility criteria, only four officials are eligible to apply.They are Lavanya R. Mundayur, CMD, Agriculture Insurance Company, Hitesh Joshi, executive director and acting CMD of GIC Re, Jayshree Bala,ED GIC Re and V Balkrishna, general mansger, GIC Re.
Though, normally, FSIB used to shortlist five candidates (for undertaking its selection process) for one post, it is not yet known how many candidates will be shortlisted for the GIC Re top post after private sector candidates have been allowed.
However, industry observers have pointed out it will be difficult to get competent private sector persons for the post of GIC Re CMD as the government salary is quite low in comparison with big packages the private sector insurers offer for such posts.
Compensation packages of almost all CEOs of the Indian private sector re/ insurers run into crores whereas CMD of GIC Re, in the rank of additional secretary of government of India, gets a total annual packages around Rs 50 lakhs in line with similar other government jobs.
Just for example, combining salary and bonuses/stock HDFC Life CEO Vibha Padalkar’s total annual compensation was around Rs 9.8 crore for FY 25.
Observers point out that GIC Re, with an annual premium of Rs 41,154 crore and a net profit of Rs 6,701 crore in FY 25, is not only the leader in Indian reinsurance market also the ninth largest global reinsurer and the third largest Asian reinsurer.
It needs a strong, experienced hand to grow its global business amidst rising competition in domestic market as a dozen of foreign reinsurance branches (FRBs) set up by global reinsurers and cross boarder reinsurers(CBRs), operating from overseas markets, have already captured over 60 per cent of market share in Rs 1 lakh crore Indian reinsurance market.GIC Re currently earns over 75 per cent of its premium from the Indian market.
Much of today’s talent crunch situation in the industry can be attributed to the fact that the PSU general insurers didn’t undertake any recruitments of officers, at the entry level,for more than almost 10 years since 1991.
With gradual retirements and exits(for the private sector companies) of majority of direct recruit officers and without any laid out succession planning , which should have been supervised by the government, the leadership crisis is going to hit the PSU general insurance companies hard going forward, said analysts.
“Still, the government shouldn’t be in a hurry to usher in private sector professionals right at the top of these large PSU general re/insurance companies as it will create more crisis than solutions. It should be case to case basis and competent internal candidates, who have built their expertise over the years, should be given their due recognition and position,’’ caution the observers adding that it is not very clear why the government didn’t appoint any private sector professionals in PSU banking industry after once experimenting them with Bank of Baroda and Canara Bank a few years back.