ICICI exits to transform insurance

It could be one of the most interesting turning points in the insurance industry in India. Two of its ‘longest’ serving chiefs — Shikha Sharma of ICICI Prudential Life (IPru) and Sandeep Bakshi of ICICI Lombard, the leading insurance ventures from the ICICI stable — have/are set to exit for new assignments.

Sharma and Bakshi are the longest serving heads of their respective companies and have been at the helm since the insurance industry was opened up to private players nine years back. Almost all other life and general companies have seen two to three changes over the last 8-9 years. Even Life Insurance Corporation (LIC) has seen three to four changes at the top in this period.

While Sharma will take over as Axis Bank CEO, Bakshi is tipped to take over as executive director of ICICI Bank. Talks are on that V Vaidyanathan will step into Sharma’s role at IPru, while Bhargav Dasgupta, executive director at IPru, is likely to head the general insurance venture.

It would be interesting to see how the changes impact the insurance firms, especially when both are seeing tempered growth in the midst of the economic downturn. Changes at the helm could also mean alterations in the top management team, although there was no official confirmation of this.

Moreover, most insurance companies are nearing break-even and may chose to tap the stock market when the economic situation improves.

IPru has raked in almost Rs 6,000 crore as new business premium till February and has been a market leader among private sector players over the years.

Rivals such as Bajaj Allianz Life, Birla Sun Life, SBI Life, HDFC Standard Life, Max New York Life, Tata AIG Life, Aviva and Metlife

have seen more than one change at the top in the last eight years.

ICICI Lombard’s competitors Tata AIG General, Royal Sundaram, Iffco-Tokio, Bajaj Alliance General, HDFC Ergo (erstwhile HDFC Chubb) and even the nationalised majors including New India Assurance, National Insurance, United India and Oriental Insurance have seen changes at the helm over the years.

“Everyone would be keeping a close watch on the developments at IPru,” said a senior executive of a leading life insurance company on condition of anonymity. “We have seen changes at the helm in our company more than once. Much depends on the way change comes in. When it is brought in times of uncertainty, everyone looks for an anchor. But the organisation eventually comes out stronger”.

A bunch of agents and a couple of mid-level officers working with the IPru said they were looking forward to the change in the way of working.