Prasun Sikdar,MD & CEO designate, Bima Sugam India Federation

Sources point out that a formal decision to appoint Sikdar, who is already a board member of the Bima Sugam India Federation, as the CEO of the company has been taken by the IRDAI in consultation with the board members of the company. It is believed his total package as the CEO of Bima Sugam India Federation, registered as a non-profit company, will be over Rs 10 crore including other perks and allowances

Hyderabad: Prasun Sikdar,managing director & CEO Manipal Cigna Health Insurance, is set to be the first CEO of Bima Sugam India Federation, a private limited company, incorporated under the Companies Act to implement the game changing project of the Indian insurance industry-Bima Sugam.

Sources point out that a formal decision to appoint Sikdar, who is already a board member of the Bima Sugam India Federation, as the CEO of the company has been taken by the IRDAI in consultation with the board members of the company.

Though, there was an effort, with the help of headhunter Executive Access, to choose a CEO with a broader background, finally IRDAI and other members in the selection panel preferred an insider and insurer to be the first CEO of company that will be setting up an e-market place and is expected to usher in the `UPI moment’ in the Indian insurance industry that has generated Rs 11 trillion of premium in FY24.

It is believed his annual total package as the CEO of Bima Sugam India Federation, registered as a non-profit company, will be over Rs 10 cr including other perks and allowances. This may be the highest package for any CEO in the Indian insurance industry.

“The package indicates the importance, the IRDAI and the insurance industry are attaching to the Bima Sugam project from the day one,” said industry analysts.

Sikdar, known for his marketing skills, has been the MD & CEO of Manipal Cigna Health Insurance since 2018 and was one of the member of core panel to implement Bima Sugam project from the begining.

He had started his career in GE Capital in 1998 and has worked with ICICI Prudential Life Insurance and Yes bank during his 26- year long career in the Indian financial services sector.

Earlier, Debasish Panda, chairman, IRDAI, had set a deadline of April 2025 for the Bima Sugam project to go live.

Panda had stated that Bima Sugam is a revolutionary project for the Indian insurance sector and is poised to democratize and universalise insurance in India and possibly one of the first initiatives of its kind across the world.

There are currently 11 promoters of the company which was established on 18th June, 2024. The shareholding of the company is widely held amongst life insurers, general insurers and health insurers with no single entity having controlling stake.

Having its registered office in Mumbai, the company will have two nominees from the IRDAI on its Board besides having its own non-executive chairman and CEO, who will be appointed with the consultation of the IRDAI.

Each of the insurers will contribute their share of the capital. Initially, a corpus of Rs 200 crore will be mobilized to get the project up and running. Afterwards, more capital will be raised from the insurers if necessary.

An insurance committee headed by Neelesh Garg, MD & CEO, Tata AIG General Insurance, is supervising the implementation of the Bima Sugam project, , till a company and a CEO are in place to take over the day to day functioning of this e-market place.

The consultant to the project, E&Y has been asked to chart out the final part of the Bima Sugam project for developing the e-market platform, along with the consultation of all stake holders.