Bajaj Allianz top deck reshuffle gets Irda clearance

HYDERABAD/MUMBAI: Insurance Regulatory Development Authority (Irda) has cleared top management changes at Bajaj Allianz. This is the first proposal that the regulator has cleared after it introduced new norms making it mandatory for all companies to seek prior approval for top-level reshuffle. “We have approved top-level changes proposed by Bajaj Allianz,” said Irda chairman CS Rao.

Allianz country manager and Bajaj Allianz Life Insurance CEO Sam Ghosh will take charge of Allianz’s operations in the Middle East. Kamesh Goyal, currently CEO of Bajaj Allianz General Insurance Company, will replace Sam Ghosh. Swaraj Krishnan, who is currently general manager in Bajaj Allianz General, will be the new CEO in place of Mr Goyal.

Both Bajaj Allianz ventures — life and non-life — currently occupy the number two position among private sector companies. The top management changes take place ahead of the demerger of Bajaj Auto’s financial services business into a separate company. The board of Bajaj Life and General Insurance cleared the appointments on Friday. A formal announcement is likely to be made soon after a communication is received from the regulator.

The insurance regulator had made it clear that no appointment, re-appointment or termination of CEO, whole-time director or managing director of an insurance company will be valid till prior approval was granted by it.

Insurers have to inform the authority, at least, 30 days in advance to enable the completion of due diligence. Insurance companies have to provide to the regulator details of the CEO-designate, including his qualifications, experience, remuneration and other directorships.

The current year has seen a significant churn at top levels of private non-life insurance companies. Earlier this year, Tata AIG General MD Dalip Verma moved to the Middle East. His successor Michael Carlin, too, put in his papers within a couple of months with Gaurav Garg taking charge in June 2007.

A few weeks later, Royal Sundaram Alliance MD Antony Jacob moved to take on regional responsibilities in the Gulf region. Mr Jacob’s position was filled in by Deutshce Bank former MD and head-retail banking Ajay Bimbhet.