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.
Hyderabad: Former finance secretary Ajay Seth, 60, has taken over as the chairman of insurance regulator IRDAI.
The Appointments Committee of Cabinet(ACC) headed by Prime minister Narendra Modi had cleared Seth’s appointment as chairman of IRDAI for three years on last Wednesday.
Seth, a 1987-batch Indian Administrative Service(IAS) officer from the Karnataka cadre, retired as finance secretary in June end.
The post has fallen vacant after Debasish Panda completed his three- year term as IRDAI chairman on March 13.
Analysts expected Seth to hit the ground running with a massive growth agenda and Insurance for all by 2047, for the Indian insurance sector that generated over Rs 11 trillion premium in FY 25.
They expect with Seth at the helms of the insurance regulator, a lot of core issues and pending issues of the Indian insurance industry will now get faster traction.
“Now that a new chairman will be joining us soon we want to launch measures so that distribution changes are brought about in the market. You will find a lot of flexibility, a congenial atmosphere to grow, and to increase your business not only in the country but overseas also.” Satyjit Tripathy, member, Distribution, IRDAI had said last week at an event of Insurance Brokers’ Association of India(IBAI).
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.
Besides approvals of Yoga Guru Ramdev-led Patanjali Ayurved’s Rs 4,500 crore acquisition of Magma General Insurance and a general insurance venture floated by M Pallonji Group, in partnership with Divya Sehgal of True North, is pending and will be first few proposals Seth led IRDAI will consider.
“Ajay Seth’s appointment as the new IRDAI chairman comes as a pivotal moment for the Indian insurance sector. With his strong background in economic policy and public administration, he is expected to introduce valuable new insights and enhance regulatory clarity in a rapidly changing industry. We expect progressive reforms that will increase transparency, foster innovation, and expand insurance coverage across India,” said Alok Agarwal, MD & CEO, Zurich Kotak General Insurance Company.