The top level panel headed by Subhash C Khuntia, chairman, IRDAI to bring about large scale reforms in the Indian insurance industry, has preferred to focus on some of the pressing issues like insurance penetration and natural disaster in its inaugural meeting.
After being formed in January by the Prime Minister Economic Council(PMEC), the panel, which is being dubbed as second Malhotra Committee paving the way for the opening up of the industry for the private sector players in 2000, kick started its consultative process with the industry leaders recently.
R Chandrasekhran, secretary general, General Insurance Council and Sunil Sharma, president, Actuary Society of India(ASI) , along with others were invited to give presentations on various issues.
After much delibertaion,the panel has asked Chandrasekaran, and Joydeep Roy of PwC to prepare a detailed report on what need to be done on issues like insurance penetration and natural disasters.
The panel has preferred to start their deliberation on these two issues as the country needs effective actionplans in both the areas.
Though,the panel was given six months to complete its report, it is unlikely that it can do so as the panel has just finished its first meeting.
The working committee, which has been constituted by the Prime Minister Economic Council(PMEC), on Jan 4, to bring about sweeping changes in the Indian insurance sector including examining the lacunae in the existing various acts-the Insurance Act, 1938 and the IRDA Act 1999- governing the insurance industry and has been given a time frame of six months to prepare the report.
The member, Life, IRDAI, Poornima Gupte, member, Actuary, IRDA, Member, Non-life, IRDAI, Rajesh Dalmia of Ernst & Young(E&Y) and Joydeep Roy of PwC,SB Mainak, a former managing director of Life Insurance Corporation of India, are some of the members of this high powered panel.
Analysts have observed that the reviewing the functioning of 20 years of liberalisation is over due and Khuntia Panel can provide inputs for the further legislative and regulatory changes to bring about the necessary changes paving the ways for higher growth and contribution of the sector to the Indian economy.