The Insurance Regulatory and Development Authority of India (IRDAI) is now scouting for talent by competing with the corporates in remuneration for top executives.

The insurance regulator has notified the posts of Chief Technology Officer, Chief Communication Officer, Chief People Officer, and Chief Risk Officer for lateral recruitment. The annual package for these posts to be filled on a contractual basis carries an annual package of ₹70 lakh and may go up further.

“The gross emoluments would be around ₹70 lakhs per annum. Higher compensation could be considered for suitable candidates based on qualification and experience,” the notification said. The upper age limit is 55 years.

This is higher than the salary of the chairman of IRDAI. According to the Finance Ministry, the chairman is entitled to a consolidated pay and allowance of ₹4.5 lakh per month without the facilities of a house and a car. No upper cap on pay beyond ₹70 lakh has been fixed in the current lateral recruitment, and it could go even higher, up to ₹1 crore, for deserving candidates, according to sources.

The whole-time members of IRDAI draw a consolidated pay and allowance of ₹4 lakh per month, which works out to be ₹48 lakh per annum, lower than the ₹70 lakh that has now been offered for the new officer posts.

Also read: IRDAI names LIC, GIC Re and New India Assurance as domestic systemically important insurers

The Need

There are diverse reasons for offering attractive pay. The insurance sector is now gaining more traction, with greater interest in setting up new companies. There are currently 20 applications seeking approval for setting up new insurance companies, both in life and non-life are under process with the regulator.

There are already  26 life insurers (including the two new approvals that are yet to commence operations), 28 general insurers, five standalone health insurers, and one reinsurer. “There is also a target of reaching insurance for all by 2047, and the sector is expected to witness greater traction in view of the digital and fintech revolutions, which will shape the future growth of the industry,’‘ said a senior official.

The intention behind higher remuneration is to attract the “best talent” in the interest of protecting the policyholders’ interests while furthering the growth of industry and insurance penetration, besides promoting ease of doing business. 

IRDAI is a 10-member body, including the chairman and five full-time and four part-time members appointed by the government of India.

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