MC EXCLUSIVE IRDAI Chairperson search hits roadblock as top candidates refuse to move to Hyderabad

Despite the IRDAI-chairman process underway, top candidates are reportedly declining the offer due to unwillingness to relocate to Hyderabad

The Chairperson position at the Insurance Regulatory and Development Authority of India (IRDAI) is proving hard to fill, mainly because many candidates are unwilling to relocate to Hyderabad, where the regulator is headquartered.

According to sources, Ajay Seth, who was previously considered for the IRDAI Chairperson role, has declined the position, citing unwillingness to relocate from New Delhi. Seth currently serves as the Finance Secretary and Secretary, Department of Economic Affairs, and is stationed in the national capital.

Also on the list of reluctant contenders is M Nagaraju, a key name being discussed for the Chairperson position.

He is presently the Secretary of the Department of Financial Services under the Ministry of Finance, also based in New Delhi.

Sources say Nagaraju, too, has conveyed reservations about taking up the post due to the requirement of relocating to Hyderabad, a condition that continues to deter several senior officers working out of Delhi and other metro cities.

The key reason seems to be the distance from the national capital for senior bureaucrats who prefer remaining close to key ministries and policy power centres in New Delhi, a senior official at an insurance company told Moneycontrol.

A text message sent to Nagaraju seeking confirmation remained unanswered until the time of publishing.

“With successive names opting out, the government may now be compelled to rethink its approach, either by incentivising the move or re-evaluating the location constraint if it wants to attract top talent,” the official added.

Emails sent to the Department of Financial Services and IRDAI went unanswered at the time of publishing.

Why Hyderabad?

Sources indicated, the IRDAI is headquartered in Hyderabad primarily due to a decentralisation move initiated in the early 2000s.

When the authority was first established in 1999, its operations began in New Delhi. However, in 2001, under the leadership of its first full-time Chairperson N Rangachary, the headquarters were shifted to Hyderabad.

This decision was part of a broader government initiative to decongest Delhi and promote the growth of other cities as administrative and regulatory hubs.

Hyderabad, with its developing infrastructure, lower operational costs, and availability of skilled workforce, was seen as a suitable choice.

Leadership vacuum: A recurring challenge

The Chairperson position at IRDAI has been vacant since March 14, 2025, leaving the regulator rudderless for nearly four months.

This leadership vacuum comes at a critical juncture, with key reforms, including the rollout of the Bima Trinity initiative and composite licensing, stalled in the absence of top-level oversight.

Last time the IRDAI post remained vacant for an extended period was before Debasish Panda’s appointment in March 2022, when the authority went almost 10 months without a Chairperson following the departure of Subhash Chandra Khuntia.

Panda then implemented several reforms during his tenure (March 2022–March 2025), such as transitioning to a principle‑based regulatory framework, introducing a ‘use‑and‑file’ system for insurance products, revising surrender value norms, and rationalising expense norms.

His departure has left ongoing initiatives like Bima Sugam, Bima Vistaar, and Bima Vaahaks in uncertainty.

The current recruitment process began in early March 2025, with a deadline of April 6 for applications.

Eligibility criteria include a minimum of 30 years of relevant experience, service at Secretary-level in government or equivalent leadership roles in the private sector, and a maximum age of 63 at the time of vacancy (March 14, 2025), with residual service of at least two years.