Insurance sector pins hope on new IRDA chief for turnaround

With the new IRDA chairman assuming office, hopes are running high in the insurance sector. CNBC-TV18 Mitra Joshi and Ashmit Kumar find out what the insurance industry expects from TS Vijayan.

All eyes are now on the new IRDA chairman. With the insurance industry still coming to terms with its lacklustre performance in the past three years during which business fell steadily and pushed a majority of ULIPs and pension products almost off the radar. The hope rests on TS Vijayan’s ability to bring about a turnaround. G Murlidhar MD, Kotak Life Insurance, says, "The industry will welcome this news. He has spent a considerable period of his career in the insurance sector especially in life insurance segment. He knows the issues and can quickly come with the terms with what needs to be done. He has far more experience than any private sector insurance professional. So expectations from him are great." Amitabh Chaudhry, MD and CEO, HDFC Life Insurance, says, "The industry has declined over the last two years. A lot of regulations and guidelines are pending and that has added bit of uncertainty in the industry." For starters, insurance sector participants want changes in the guidelines for traditional products, and according to sources, the industry has been unhappy with the guidelines and have been demanding a relook at the guidelines. “It will be welcome if a fresh look is taken at the guidelines and strike a balance between customer and industry needs.” G Murlidhar says. As a former chairman of LIC, the insurance industry hopes TS Vijayan’s extensive experience will come in handy while shaping the sector's growth-path for the next 5 years.