Close on the heels of mutual funds (MFs) disclosing remuneration of its top executives following a directive from SEBI, insurance companies have also been asked to provide information on executive pay. The Insurance Regulatory and Development Authority of India has directed insurance companies to disclose details of remuneration paid to MD, CEO and key management persons in its revised guidelines on corporate governance.
“These (revised) guidelines are applicable from FY 2016-17,” it said.
Though insurance companies disclose the remuneration of MDs and CEOs in their annual reports, they do not contain details on the pay of key officials such as Chief Investment Officer, Chief Risk Officer and Chief Actuary. Moreover, incentives paid to key management persons are also typically not included.
Further, insurers should provide details of remuneration paid to independent directors. “All pecuniary relationships or transactions of the non-executive directors vis-à-vis the insurance company shall be disclosed in the annual report,” IRDAI said.
Financial performance including growth rate and current financial position of the insurer should also be disclosed, it said. The new guidelines are, however, not applicable for reinsurance companies and branches of foreign reinsurers in India.
