“CAG appoints auditor public sector insurance companies”

The appointment of statutory auditors in the General Insurance Corporation of India, and its subsidiaries and the divisions as well as other public sector Insurance Companies is made by the Comptroller and Auditor General of India, as in the case of other public sector undertakings (For example, in the case of New India Assurance Company Ltd., United India Insurance Company Ltd.).

“For other companies they are appointed at AGM” 

However, in the case of others, auditor is appointed at the AGM after ensuring that the auditor satisfies the compliance requirements with the relevant sections of the IRDAI Guidelines on Corporate Governance.

Further there are restrictions on number of audits which auditors can do for PSU as well as Private Sector Entities

Maximum number of audits, max 3 insurance audits and maximum 2 life insurance companies or maximum 2 general insurance companies 

These guidelines pose certain restrictions on the number of insurance companies a statutory auditor can audit. Currently, an auditor can conduct audit only for three insurance companies and not more than 2 life or 2 general. The Guidelines also mandate a mandatory joint audit for all insurance companies.