An over three month delay by the centre to appoint the new IRDAI chairman following the retirement of former chairman Subhash Khuntia on May 6, is impeding regulatory progress and causing business disruptions for India’s insurance sector amid the coronavirus pandemic, according to industry stakeholders.
Insiders claim that the backlog of crucial policy considerations as well as routine clearances are getting delayed even as companies themselves are suffering from a possible lack of regulatory oversight. These concerns have been further exacerbated as the country’s life and health insurance sector have taken massive hits on finances in the June quarter owing to the devastating second wave of infections.
Highlighting one such concern, an industry executive requesting anonymity said: “The renewal of reinsurance Unique Identity Numbers (UIN) has been stuck for several weeks now in the general insurance category. These are routine clearances and delays are affecting the pricing of policies being offered to brokers and customers alike.”