MUMBAI: The Insurance Regulatory and Development Authority of India (IRDAI) has notified the reconstitution of its Insurance Advisory Committee (IAC), welcoming a fresh lineup of members tasked with providing strategic advice on regulatory matters concerning the insurance industry. The announcement comes as Chairman Debasis Panda concludes his tenure, ensuring that the committee is equipped with experienced professionals from diverse sectors.
On March 20, 2025, the IRDAI officially published the notification detailing the appointed members for the revamped committee. Notable figures include MR Kumar, the former chairman of the Life Insurance Corporation (LIC); Dinesh Kumar Khara, the former chairman of the State Bank of India (SBI); Vishakha Mulye, CEO of Aditya Birla Capital; Nilesh Shah, managing director of Kotak Mahindra Asset Management Company; and Alice Geevarghese Vaidyan, a former chairman and managing director of General Insurance Corporation Re (GIC Re). This diverse group brings a wealth of experience to the advisory committee, which plays a critical role in shaping the future of India's insurance sector.
Dinesh Kumar Khara's influence extends beyond his new role on the advisory committee. He is also at the helm of a high-level committee established by the IRDAI, which is currently reviewing proposed amendments to the Insurance Act of 1938. This dual responsibility signifies the importance of the review process as the regulatory body seeks to modernize the insurance framework in India.
The IAC, vital in offering expert guidance to the IRDAI on key regulatory issues, can consist of 25 members, not including the chairperson and other ex-officio members. With this reconstitution, the IRDAI highlights its commitment to infusing expert insights from various sectors within the financial landscape.
In November 2024, the IRDAI proposed several operational modifications aimed at enhancing the function of the IAC. These included transitioning meetings from a calendar year to a financial year format, allowing for more flexibility. Additionally, the notice period for meetings was recommended to be reduced from seven days, pending chairperson approval. The position of 'designated officer' was suggested to be renamed to 'secretary to the authority', further clarifying roles within the committee.
An important change allows the chairperson to dictate the timing, location, and mode of meetings, which could include virtual arrangements. Moreover, for urgent matters, emergency meetings could now be conducted with a mere 24-hour notice, expediting decision-making processes. The proposed changes also indicate the introduction of protocols for resignations and removals of committee members, showcasing the IRDAI's aim to maintain a robust governance structure.
The IRDAI's strategic move to reconstitute the Insurance Advisory Committee signals an intent to better align the regulatory framework with contemporary industry standards while enhancing its advisory capabilities. As the landscape of insurance continues to evolve in India, the IRDAI's actions towards establishing a knowledgeable and agile advisory body come at a crucial time.
In summary, the new appointments reflect IRDAI's dedication to fostering informed and responsive governance as it aims to support the evolving needs of the insurance sector. As this new committee begins its work, industry stakeholders and analysts will be watching closely to see how these expert recommendations will shape future regulatory policies.
