Three months after Panda's exit, Irdai chairperson post remains vacant

Absence of a regulator stalls key insurance reforms including Bima Trinity, composite licence, and risk-based capital framework
Subrata Panda Aathira Varier Mumbai
Listen to This Article
Nearly three months have passed since Debasish Panda completed his term as Chairperson of the Insurance Regulatory and Development Authority of India (Irdai), yet the position remains vacant. The Ministry of Finance had invited applications for the post, with the last date for submission being April 6. However, the government is yet to make an appointment.
Panda, who took charge as Irdai Chairperson in March 2022, had himself been appointed nearly 10 months after the departure of his predecessor, Subhash Chandra Khuntia.
With Panda completing his term on March 13 this year, several initiatives he had spearheaded now

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

an hour ago

• Time of India

From cloud-first to cloud-smart: Why Indian enterprises need a sovereign strategy

Over the past decade, Indian enterprises have quickly adopted the cloud and are now embracing a cloud-first approach to accelerate their digital transformation. But today, the conversation is shifting. With rising compliance demands and geopolitical concerns, this strategy to gain agility and scale is being re-evaluated. This transition from "cloud-first" to "cloud-smart" is especially relevant in a country like India, where there is growing emphasis on digital sovereignty. In the early phases of digital transformation, the cloud-first model was effective. It prompted companies to update their IT systems, migrate workloads more rapidly, and respond to business demands more quickly. However, soon, a lot of businesses began to face difficulties. They discovered that not all workloads are suitable for the public cloud, including performance bottlenecks for applications sensitive to latency, and soaring costs. Businesses began to encounter increasingly complex challenges related to data control, security, and regulatory compliance as digital systems evolved. Cloud-smart: Optimizing for control, and compliance A cloud-smart strategy involves the judicious usage of cloud resources. It emphasizes choosing the right deployment model, which is either public, private, hybrid, or sovereign cloud , based on regulatory obligations and the organization's workload requirements. Gartner predicted that by 2023, 60% of all organizations that had adopted a cloud-first policy would seek out a more balanced, cloud-smart approach to it. This is a vital approach for India. The Digital Personal Data Protection (DPDP) Act mandates strict guidelines for localization and data handling. Sectoral regulators such as the RBI and IRDAI have introduced data residency requirements for financial and insurance data. In this context, data storage with processing overseas might not always be a viable or compliant option when depending on foreign hyperscalers. Why sovereign cloud is becoming non-negotiable Digital sovereignty is having national jurisdiction over data and digital infrastructure. While global cloud platforms offer scalability and innovation, they bring challenges. With escalating cyber threats, enterprises and governments are prioritizing control over security. India recorded over 1.6 billion cyberattacks in 2023 alone. Enterprises now face risks due to foreign surveillance laws, such as the U.S. CLOUD Act. Hyperscalers worldwide, even with technological prowess, cannot often provide a guarantee of jurisdiction. In contrast, a sovereign cloud ensures data is stored, processed, and managed under Indian laws within Indian borders. It allows enterprises to control their digital assets and aligns itself with the vision of the government for a self-reliant digital India. The problems with relying on global hyperscalers Many CIOs and CTOs are now rethinking how their infrastructure is set up, especially when it comes to critical workloads. It's becoming harder to ensure that data stays within India and keeps up with changing local regulations. There's also a growing security concern, with limited visibility into where exactly data is stored or who might have access. Moreover, using proprietary tools often leads to vendor lock-in, making it tough to switch providers when needed. Shifting global politics poses the constant risk of foreign policy changes. This can disrupt access to essential data or services. These concerns are pushing tech leaders to look for smarter, more resilient strategies that offer better control and resilience. The roadmap for enterprise leaders 1. Give hybrid and multi-cloud architectures top priority: Use a combination of sovereign, private, and public cloud services. While less sensitive workloads can use global infrastructure, sensitive data can remain in India, providing flexibility and ensuring compliance. 2. Integrate Compliance by Design: Ensure your cloud strategy incorporates Indian data protection laws from the outset. Decide on deployment models based on the sensitivity of the data. Collaborate with suppliers who provide clear data residency controls. 3. Reduce Vendor Lock-In: Use infrastructure-agnostic tools, containerized apps, and open standards. To maintain resilience and bargaining power, design systems with portability in mind. 4. Make Security and Observability Better: Implement strong encryption methods, keep track of your own encryption keys, and make sure that data flows between platforms are always being watched and audited. 5. Partner with cloud providers based in India: Local cloud partners can give you sovereign infrastructure, faster support, and a better understanding of the rules and regulations. Look for providers that MeitY has approved for government and BFSI workloads. Looking ahead The cloud will be the cornerstone of India's projected $1 trillion digital economy by 2027. However, this foundation needs to be based on compliance, sovereignty, and smart architectural decisions. The cloud-smart approach is a strategic necessity rather than merely a tactical change. In addition to future-proofing their operations, businesses that adopt a sovereign-first mentality will also support India's larger goal of technological autonomy. The time has come for IT leaders to review their cloud strategy and establish sovereignty as a key component of their digital approach.

India Today

3 hours ago

• India Today

Your vehicle insurance is likely to go up. Know by how much

Vehicle owners may soon have to shell out more for third-party insurance, as a proposal is under consideration to hike premiums by 18–25% for the financial year 2025– to a report, the Ministry of Road Transport and Highways is reviewing a recommendation from the Insurance Regulatory and Development Authority of India (IRDAI) to revise these rates for the first time in four proposed revision includes an average increase of 18% in third-party (TP) motor insurance premiums, with steeper hikes of up to 25% suggested for specific categories of vehicles. A final decision from the ministry is expected soon. Third-party motor insurance is legally mandatory for all vehicles under the Motor Vehicles Act and covers liability for injury, disability, or death caused to a third party. The last significant increase in these premiums occurred between FY13 and FY18, with only marginal revisions of 2–3% allowed from FY19 to proposal comes amid rising claim costs and inflation, which have squeezed insurers' margins. While net claim ratios for TP insurance remained stable at around 82% in FY23 and FY24, ultimate claim ratios have increased to 88% and 91%, respectively. The insurance sector argues that the premium hike is necessary to maintain financial sustainability, especially with increasing compensation payouts in accident-related a March 2025 investor call, ICICI Lombard MD and CEO Sanjeev Mantri also indicated the likelihood of a premium revision in the upcoming fiscal year. Insurers like New India Assurance and Go Digit have already reported rising claim burdens, with incurred claim ratios climbing to 102% and 65%, respectively, in Q3 impact of the proposed hike will be felt across vehicle categories—from two-wheelers and private cars to commercial vehicles. For instance, the current third-party insurance premium for small cars (up to 1,000cc) could rise from Rs 2,100 to Rs 2,500, while for mid-sized cars (1,000–1,500cc), the premium may increase from Rs 3,400 to Rs 4, a parallel effort to boost insurance coverage in underpenetrated and rural areas, the regulator has also directed insurers to ensure adequate coverage for vehicles like tractors, goods carriers, and private to Auto Today Magazine

Business Standard

14 hours ago

• Business Standard

Looking at double-digit growth for SME banking in India, says Xie Wen

India is one of the largest small and medium enterprise (SME) hubs for London-headquartered Standard Chartered (StanC) Bank. Xie Wen, global head of SME banking at StanC, speaks to Subrata Panda and Manojit Saha in Mumbai about the bank's SME portfolio in the country, growth prospects, the impact of tariff-related uncertainties, and how the bank has supported its SME clients in navigating this challenging period. Edited excerpts: How much of the SME banking revenues come from India? In terms of revenue, it is 18–20 per cent. But in terms of assets, it is close to 40 per cent. It is the biggest in terms of SME assets. India is a big market for StanC, and it is also its fastest growing market for the SME segment, as India is the fastest growing economy in the world. In India, which are the business segments in SME banking where you are seeing maximum growth? Trader working capital. We are growing in double digits. SMEs are usually part of the supply chain of multinational and larger corporations. The working capital loan helps them manage their operating cycle and cash flow much better. So we do see that, with business activity and the economy growing, the need for working capital loans is also growing. Which are the sectors among SMEs that you are more bullish on? We are actually quite diversified across different segments — trading, manufacturing, services, and information technology. But I see that in India, manufacturing is certainly growing, and services continue to be a very important and big driver of the economy. How is StanC affected by the increasing stress in unsecured lending to businesses and SMEs? Our portfolio is holding up very well. We continue to invest in data and digital capabilities. India has very good credit bureau infrastructure — both the commercial bureau and the personal bureau. When we do underwriting, we look into bureau data. We also plug into the goods and services tax, where you get a sense of how businesses run. We also have strong monitoring capabilities for understanding how businesses are doing. So our business is performing well. SMEs are more vulnerable to business cycles. Are you concerned about asset quality, given the current circumstances? In general, SMEs are more vulnerable everywhere to market uncertainties, volatility, and stress. The bank needs to be dynamic in understanding the market. We also have to be more dynamic in investing in digital capabilities because if you don't enhance your tools and investment to get the latest data, you will be left behind. SMEs are the core of the economy, so any volatility in the market will affect them. But it's important for banks to continue to invest in capabilities to support them, to understand the risk, and to manage the data and information asymmetries. What is the growth you see in this segment going forward? I will be looking at double-digit growth for India. Globally and in India, how have your SME clients been impacted due to tariff related uncertainties? I think globally it's not just SMEs that are concerned — big multinationals are also worried. The concerns are around supply chain reliability and rising trade costs. At the same time, we see our region doing relatively better because there is huge trade within the region. So I see a lot of businesses looking to diversify. We are seeing an increase in trading within Asia, and between India and West Asia and the Association of Southeast Asian Nations. We are also seeing businesses looking to diversify their supply chains. So, to some extent, India will benefit from the China+1 phenomenon. India also has the benefit of a huge, growing middle class. So we are very positive about urbanisation. The growth of the middle class will help propel consumption, and that will be another engine for growth. Uncertainty is there, and challenges are there. These have certainly increased this year globally, but I think those who do will be relatively better off — and that is where more opportunity will come from. Unlike in other regions, in India you cannot offer interest on current account offerings. How do you navigate this challenge in SME banking? It's actually a level playing field. Everyone is subject to the same regulations. In this environment, you have to grow the business by doing a few things. You need to provide good service. It is online banking — we call it S2B, Street to Bank. So that is the platform we provide to SMEs, where they can manage their liquidity. For SMEs, we provide direct data linkages to the enterprise resource planning system, which helps them with efficiency. We provide them with good advice. Service, capabilities and tools, and advice are three key things. Have you seen a slowdown in activities in SMEs? I saw a bit of a slowdown at the beginning of the year because of uncertainty related to tariffs. The cost of funds was a challenge. But I see that improving now. There is good movement on interest rate cuts by the Indian regulator. At the same time, we see that, given the developments in the tariff space, activity is picking up. The second quarter has certainly picked up. What are the strategies the bank has adopted to allay the fear of its SME clients? Stay close to the clients; have dialogues, work together with them. So far, our clients have weathered this uncertainty pretty well. It will be difficult for us to give a breakdown. But in India certainly it's quite significant.