The insurance regulator IRDAI's stewardship guidelines for insurers seem to have been implemented by only a handful of insurers, though it has been more than a year after they were announced in January 2017.
Under the stewardshop guidelines, insurance companies have to provide detailed disclosures for their investments and how they took decisions in investee companies. IRDAI says that adoption of these principles would improve the confidence of policyholders and improve corporate governance and decision-making at investee companies.
IRDAI had asked insurers to formulate a policy on the discharge of their stewardship responsibilities and publicly disclose it. It also said that insurers should have a clear policy on how they manage conflict of interest in fulfilling their stewardship responsibilities and disclose the same.
However, getting information about investments made by insurers and their voting decisions is a mammoth task, reports Moneycontrol. There is no disclosure about why an investment was made in a particular company.
In addition, except for listed insurance entities, there is no published information on how insurance companies vote in investee firms.