16 November 2017 – As financial institutions whose business is the acceptance and management of risk, insurers are expected to have sound governance practices and effective risk management systems. The nature of their business activities requires insurers to be subject to tailored guidance on their risks and responsibilities.
The OECD Guidelines on Insurer Governance provide guidance and serve as a reference point for insurers, governmental authorities, and other relevant stakeholders in OECD and non-OECD countries. The Guidelines have been revised and expanded for the second time since they were first adopted in 2005 to reflect evolving market practices and updates to international guidance following the financial crisis.
The revision process involved a comprehensive stocktake of existing international guidance on corporate governance, in particular the 2015 G20/OECD Principles on Corporate Governance and a public consultation. Key updates include:
Related party transactions at the group level
Disclosure of policies relating to ethics, business conduct, conflicts of interest, and public policy including environment and social issues,
Disclosure on the roles of the Chair and CEO,
Recognition of employee representation
Promotion of diversity on boards
These non-binding Guidelines provide guidance and serve as a reference point for insurers, governmental authorities, and other relevant stakeholders in OECD and non-OECD countries. They Guidelines complement the principles on pension fund governance in the OECD Core Principles of Occupational Pension Regulation and the G20/OECD Principles of Corporate Governance.
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