Hydearbad:
IRDAI has formed a committee on Thursday under Praveen Kutumbe, member(Finance & Investment) to review the existing guidelines on corporate governance guidelines for insurance companies and to make it more effective and robust, constitutes, the insurance regulator
The committee will review the guidelines for corporate governance for Insurers and suggest changes, if any, specifically in the light of relevant ICPs and Application Papers of IAIS on Governance and control functions.
IRDAI had issued the Corporate Governance Guidelines for insurance companies in India in 2016.
The participation of the IRDAI in peer review process of IAIS on ICPs more particularly on ICP 5 – Suitability of Person, ICP 7 – Corporate Governance and ICP 8 – Risk Management and Internal Controls indicated that there is need to further strengthen the guidelines, explainedthe IRDAI.
Further, four key functions (risk management, actuarial, compliance and internal audit) are an essential part of the system of governance.
These key functions are expected to be operationally independent to ensure an effective and robust internal control environment within an insurer and support high quality of decision-making by the management.
At the same time, it is also important that these governance requirements are not overly burdensome for in¬surers, said the IRDAI.
Accordingly, in order to provide due weightage to control functions, there is need to enhance the governance system of insurers, said the insurance regulator.