Asian News - Pakistan: Code of Corporate Governance for Insurers approved
Source: Asia Insurance Review | Apr 2016
The Securities and Exchange Commission of Pakistan (SECP) has approved the promulgation of the Code of Corporate Governance for Insurers after consulting stakeholders.
The purpose of the Code is to improve the governance of insurance companies, keeping in view the best international practices in the insurance sector. This would also help maximise protection of the interests of the insurance policyholders and enhance confidence of the public in insurance companies.
The framework has been devised to cater to general governance aspects as well as insurance-specific ones. The insurance-specific provisions have been taken from the Insurance Core Principles laid down by the International Association of Insurance Supervisors.
The Code requires all insurers to form balanced and diversified boards, including appointing independent directors to their boards. They are required to have a dedicated grievance system to handle policyholders’ complaints and grievances within 30 days.
They are also required to constitute committees for all core functions. Moreover, certain restrictions have been laid down concerning key management personnel to ensure independence of the decisions they may make to avoid conflict of interest.