The Insurance Regulatory and Development Authority of India (Irdai) has set up a seven-member committee, led by former State Bank of India chairman Dinesh Khara, to review reforms in the sector, according to sources.
The committee includes representatives from the life and general insurance sectors, the Reserve Bank of India and financial sector veterans. The members are: NS Kannan, former MD and CEO of ICICI Prudential Life Insurance; Saurabh Sinha, former executive director of RBI; Girish Radhakrishnan, former CMD of United India Insurance; Rakesh Joshi, former member of Irdai; Alok Misra, MD and CEO of MicroFinance Institutions Network; and L Vishwanathan, a legal expert.
The formation of the panel indicates a likely delay in the Insurance Act Amendment Bill, which was expected to be introduced during the ongoing Budget session. The Bill, which has undergone extensive consultations over the past two years, proposes significant changes to the Insurance Act, 1938.
One of the key proposals is to increase the foreign direct investment limit from 74% to 100%. Introduction of composite licensing, allowing life insurers to offer non-life products such as health insurance, reduction in solvency norms and changes in investment regulations are among other proposals.
The committee held its first meeting on Tuesday, according to the source. The panel is not expected to propose fresh changes, but will review the amendments to the Act and outline an implementation framework. The committee will submit its report in two-three months, the source said.