Ajay Seth, Chairman-designate, IRDAI

Seth, a 1987-batch Indian Administrative Service(IAS) officer from the Karnataka cadre, retired in June end

New Delhi: Finally, Ajay Seth, 60, former Finance Secretary, Ministry of Finance, has been appointed as the new chairman of Hyderabad based insurance regulator IRDAI for three years.

The Appointments Committee of Cabinet(ACC) headed by Prime minister Narendra Modi has cleared Seth’s appointment on Wednesday.

Seth, a 1987-batch Indian Administrative Service(IAS) officer from the Karnataka cadre, retired in June end.

AIP on Apr 18 had predicted that Seth is likely to be appointed as chairman of the IRDAI soon. https://asiainsurancepost.com/archives/65212.

The post has fallen vacant after Debasish Panda completed his three- year term as IRDAI chairman on March 13.

Seth is likely take over his new assignment next Monday and expected to hit the ground running with a massive growth agenda, Insurance for all by 2047, for the Indian insurance sector.

For the last few days, a few names including Seth and Girdhar Armane, former  Defense Secretary have been going around the power corridors of Delhi.

Between the two, Seth, seems to have been chosen as government has preferred a younger candidate who can serve a longer tenure. .

Like earlier decisions of the government to appoint Sanjay Malhotra, former Revenue Secretary as Governor, Reserve Bank of  India and Tuhin K Pandey, former Finance Secretary as chairman of capital market regulator Sebi , without any interviews, Seth has been selected in a similar way.

Some of the other issues, which will be matter of focus for Seth, is falling insurance penetration in the country and unaffordability of insurance premium, particularly health insurance, about which of late the government has been vocal about.

Besides, Insurance Amendment Bill, which will bring about sweeping changes in the industry, is expected to be tabled in the Parliament any time in future, will also prompt elaborate regulatory actions from IRDAI headed by Seth.

IRDAI will also consider issuing licenses to new players who have already applied or planning to apply. Recently, the regulator has issued initial approval -R1-to a new general insurance player KIWI General Insurance, where private equity player- WstBriidge Capital- has around 70 per cent stake. WestBridge Capital also has 40 per cent stake in stand alone health insurance company Star Health Insurance.

The industry has sough clarifications from the IRDAI how WestBridge Capital can float two general insurance companies and KIWI General Insurance will be doing health insurance business which is the main business of Start Health. The IRDAI headed by Seth is expected clarify these issues before giving final approvals to KIWI General Insurance.

Seth’s extensive career spans over three decades, with significant expertise in public finance, taxation, and social sector administration.

He has played a crucial role in shaping the nation’s economic policies and is credited with heading initiatives such as India’s first sovereign green bond issuance and the creation of the infrastructure finance secretariat in Department of Economic Affairs.

His academic background includes a BTech in Mechanical Engineering from IIT Roorkee and an MBA from Ateneo de Manila University.

Gaining recognition for his work in transforming Karnataka’s commercial tax administration, he had received the Prime Minister’s Award for Excellence in Public Administration in 2013.