A report appeared recently in the FE that the posts of managing directors (MDs) remain vacant in a good number of general and life insurance companies. The unfilled posts of MDs are mainly at the fourth generation insurance companies. The top positions lying vacant is explained away by the companies as their inability to find persons of high calibre as demanded by the regulatory body, the Chief Controller of Insurance (CCI). But the insiders tell a different story of complicity between the management of these companies and the CCI with the latter allowing this state of affairs to continue from its pecuniary instincts getting gratified.
Things cannot be run in such ad-hoc manner in this vital part of the financial sector without paying the negative costs at some point of time. Thus, there is every reason to be concerned about the proper expansion and development of the insurance business in the country.