How bailout for three state-run insurers highlights Irdai's incompetence

The latest bailout also raises concerns about the need for a through relook at the quality of the managerial talent in these companies

The additional capital support of Rs 12,450 crore for the three state-run insurance companies — Oriental, National and United India — can help only if the three companies and their regulator, the Insurance Regulatory Authority of India (Irdai), are overhauled. Otherwise these companies will remain basket cases.

It is understood that the finance ministry has handed these companies a list of key performance indicators (KPI). Should there be a KPI for Irdai as well? India has 70 insurance companies (including 12 reinsurance) with the regulator steering it for 20 years, sufficient time for the industry to mature. Yet in these