IRDAI forms 7-member committee to review insurance sector reforms
The insurance regulatory and development authority of India (IRDAI) has constituted a seven-member committee, chaired by Dinesh Khara, former chairman of the State Bank of India (SBI), to review proposed amendments to the Insurance Act of 1938 and recommend a regulatory framework for their implementation. The committee is formed as the Union government prepares to introduce the Insurance Amendment Bill in Parliament. The proposed amendments include increasing the foreign direct investment (FDI) cap in the insurance sector from 74% to 100%, reducing paid-up capital requirements, introducing a composite licence system, and streamlining regulatory processes. Other members of the Khara committee are: N Kannan, former chief executive officer (CEO) of ICICI Prudential Life Insurance; Saurabh Sinha, former executive director (ED) of Reserve Bank of India (RBI); Girish Radhakrishnan, former chairman and managing director (CMD) of United India Insurance; Alok Mishra, MD&CEO of the Micro Finance Institutions Network (MFIN); Rakesh Joshi, former member of IRDAI; and legal expert L Vishwanathan.
In her Union Budget speech, finance minister proposed raising the FDI limit in the insurance sector to 100% as part of broader financial sector reforms. The government aims to attract foreign investment, enhance competition, and expand insurance penetration in India.
