Rules for appointment of Chief Executive Officer (CEO) by Insurance Development and Regulatory Authority (IDRA) have been amended to address the crisis of skilled and qualified human resources in the insurance sector.
The revised regulations have relaxed the required qualification and experience for the appointment of CEOs, which is expected to significantly expand the pool of potential CEOs.
Press releases from IDRA on last Monday said due to lack of qualified people, many CEO posts in insurance companies are remaining vacant.
However, many officers at the level of Additional Managing Director (ADMD) and Deputy Managing Director (DMD) are capable of performing their duties as CEOs. Taking this reality into consideration, the Insurance Company CEO Appointment Regulations, 2012 have been amended.
IDRA believes the revised regulations will expand the pool of potential CEOs, make it easier for qualified people to take the lead, and increase transparency and accountability in the insurance sector.
As a result, it is expected that public confidence in the insurance sector as a whole will be stronger. In the revised regulations, conditions for appointing CEOs have been relaxed for senior officers of General Insurance Companies and Life Insurance Companies.
Moreover, appointment will be easier in managing directors and deputy managing directors of insurance companies, as well as for people working in senior management positions in internationally renowned multinational insurance companies.
The conditions for appointing CEOs have also been relaxed for holders of recognized professional degrees, including actuaries, CPA, CFA, CLU, ICAB, ACCA and ICMABA Fellows or Associates.
In new regulations, the deadline for submitting applications for CEO appointment or renewal and for notifying the authorities of their decision in this regard has been extended to 60 days instead of the previous 15 days.
At the same time, a provision has been added to prevent chief executive officers involved in corruption from performing their duties.
According to regulations, those who have been removed from any insurance company or financial institution due to abuse of power, corruption, money laundering or financial irregularities, or whose application for appointment or renewal as CEO has been rejected by the authorities, cannot be employed as CEO in any other insurance company, the new rule says.
