The consultative committee of the Insurance Regulatory & Development Authority (Irda) is likely to be reconstituted under the new chairmanship of J Hari Narayan.
B D Banerjee, managing director of General Insurance Corp, is said to have been inducted into the core group, which advises the regulator on technical and strategic issues.
Industry sources told DNA Money that Banerjee will replace G V Rao, also an industry veteran. Two other existing members on the core committee are C N S Shastri, former managing director, GIC and N Govardhan, former chairman of Life Insurance Corp.
The consultative committee, constituted by the Central government under Section 110(G) of the Insurance Act, generally has three to four members well-versed with the insurance business and having experience industry experience.
The core group will be consulted on a host of issues. It has the power to remove managerial persons from office should it deem fit.
The committee also has the power to order for additional directors in insurance companies in the interests of the company or of the policyholders.
The committee's views are also sought on matters relating to directions on reinsurance treaties, which may be detrimental to the insurer or public interest.
The committee's recommendations will be significant in the wake of the second wave of new players entering the Indian insurance market.
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