Government Begins Search for New IRDAI Chairman

Leadership Change at IRDAI

Following recent appointments at RBI (Reserve Bank of India) and SEBI (Securities and Exchange Board of India), the government is now looking for a new Chairman for IRDAI (Insurance Regulatory and Development Authority of India).

With Debasish Panda’s term ending on March 14, 2025, many expected an extension. However, the government has chosen to bring in fresh leadership instead.

Who Might Be Selected?

Just like the RBI and SEBI appointments, the government is likely to pick a senior bureaucrat or a retired official. Some potential candidates being discussed include:

• Giridhar Aramane – Former Defense Secretary
• Ajay Seth – Secretary, Department of Economic Affairs
• Pankaj Jain – Secretary, Ministry of Petroleum

Although these names are in circulation, uncertainty remains about whether the selection will conclude before Panda’s tenure ends.

Challenges for the New Chairman

The incoming IRDAI Chairman will face multiple pressing issues. For instance, rising health insurance premiums, driven by medical inflation, require urgent attention. Additionally, government-led reforms are reshaping the insurance sector, making regulatory oversight more crucial than ever.

Moreover, the role involves overseeing a policy review committee and implementing the recent FDI limit increase, which now allows 100% foreign investment in insurance. Managing these challenges effectively will be essential for the industry’s growth.

Selection Process & Eligibility Criteria

The Financial Sector Regulatory Appointment Search Committee (FSRASC), headed by the Cabinet Secretary, is responsible for selecting the new Chairman. However, in recent cases, the government made direct appointments without interviews.

To qualify, applicants must meet the following requirements:

• Have at least two years of service remaining as of March 14, 2025
• Be under 63 years old at the time of appointment
• Possess a minimum of 30 years of relevant experience
• Have held a Secretary-level position in the government or an equivalent CEO role in a financial institution

In exceptional cases, the FSRASC may relax eligibility conditions for outstanding candidates. The Central Government will make the final decision based on committee recommendations.

Salary, Tenure, and Benefits

The appointment will follow the Insurance Regulatory and Development Authority Act, 1999. No chairman can serve beyond 65 years of age.

As for compensation, the monthly salary is ₹5,62,500, but housing and car facilities will not be provided.

Given the insurance sector’s rapid transformation, the new IRDAI Chairman will play a critical role in shaping its future.