Finance ministry and I were like husband and wife: Hari Narayan

In his last public appearance, Irda chief says industry saw a huge transformation during his tenure

J Hari Narayan was at his humorous best in his final public appearance as the Insurance Regulatory and Development Authority (Irda) chairman. The man who has had a fair share of tiffs with the finance ministry and the industry during his five-year term that ends on Wednesday was generous with everybody, including the media, at a function here on Monday.

Narayan compared his relationship with the finance ministry to that of a husband and wife. "This is similar to a husband and wife, who may have issues between them. It keeps going on.” He did not have many complaints against the insurance industry either.

Admitting that insurance companies might not have liked the regulator’s suggestions on various issues, he pointed the industry was always responsive to suggestions. Many, however, say the statement is ironic considering that the traditional product guidelines, which were his pet project, may not see the light of the day before his tenure ends, mainly because life insurers didn’t agree with his views.

Much to the delight of mediapersons, the chairman praised the efforts of the media to faithfully report the developments in the insurance industry. While there are a long list of pending assignments, including bancassurance guidelines and solvency II norms, he was hopeful that the new chairman would take care of these issues appropriately.

Earlier, in his last public speech as the regulator, Narayan spoke about how the insurance industry had transformed, including changes in pension segment and how policyholders often did not receive a good deal. He also had a list of expectations from the industry in the future. This included initiatives in the areas of social security and catastrophe insurance. "Since I am demitting office on Wednesday, I have the liberty to say whatever...," said the Irda chief, tongue firmly in cheek.

He was optimistic about a good rate of growth for the industry, which would be aided by additional provisions in the Union Budget to have higher or separate window for insurance and exemptions for long tenure products.

Though the insurance industry has been critical of several of Irda's regulatory changes, Narayan sounded very content with the insurance industry. He said the industry players felt the regulatory changes made directionally were perfectly correct. The disagreement was only over the pace at which the reforms should take place. "I believe quick pain is better than long-drawn experience."

On the personal front, he termed his career at Irda as one of the most interesting and intellectual stimulating periods of his career. Asked about his post-retirement plans, Narayan said: “I plan to retire”.