Insurance Regulator Update

Govt May Relax Board Norms for Foreign Insurers Alongside 100% FDI Push

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The government is likely to allow foreign insurers to appoint a majority of nonresident board members and key managerial personnel once the FDI cap is raised from 74% to 100%, two senior officials confirmed. This move responds to longstanding demands from the US government and industry stakeholders, including the United States Trade Representative and Coalition of Services Industry.

"We plan to ease provisions related to board appointments. A US national or any foreign expert can be given leadership roles," said a senior official. The proposed changes are expected to be included in the upcoming Insurance Bill, slated for introduction in the Monsoon Session. Officials clarified that while these reforms won't overhaul regulatory oversight, they reflect a more open stance toward foreign leadership in India's insurance sector.

However, foreign insurers are still expected to rely heavily on Indian resident professionals, maintaining operational continuity under IRDAI's supervision. The move signals a progressive shift towards greater global participation in the sector's governance.

FSIB Selects Doraiswamy as Next CEO & MD of LIC

The Financial Services Institutions Bureau (FSIB) has recommended R Doraiswamy for the position of CEO and Managing Director of LIC, India's largest life insurer. Doraiswamy, who has been a Managing Director at LIC since September 2023, was selected after an interface with four candidates, including Sat Pal Bhanoo, Dinesh Pant, and Ratnakar Patnaik, on June 11.

FSIB cited Doraiswamy's performance, experience, and fit with the role as reasons for its recommendation. Meanwhile, Bhanoo has been granted interim charge as CEO & MD until September 7 or until the regular appointee assumes office, per a Finance Ministry notification.