IRDAI revises the guidelines on Stewardship Code for insurers in India

Feb 12, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on February 07, 2020, has decided to revise the existing guidelines on stewardship code based on the experience in implementation, compliance by the insurers and the recent developments. All the insurers need to review and update their existing stewardship policy based on the Revised Guidelines on Stewardship Code for Insurers in India within 3 months from the date of issue of the same and the updated stewardship policy needs to be approved by the Board of Directors. The updated policy should be disclosed on the website within 30 days of approval by the Board by all insurers, alongside the public disclosures. Any subsequent change or modification to the stewardship policy should be specifically disclosed at the time of updating the policy document on the website.

The followings are the principles and guidelines:-

1) Insurers should formulate a policy on the discharge of their stewardship responsibilities and publicity disclose it.

2) Insurers should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicity disclose it.

3) Insurers should monitor their investee companies.

4) Insurers should have a clear policy on intervention in their investee companies.

5) Insurers should have a clear policy for collaboration with other institutional investors, where required, to preserve the interests of the policyholders (ultimate investors), which should be disclosed.

6) Insurers should have a clear policy on voting and disclosure of voting activity.

7) Insurers should report periodically on their stewardship activities.

[IRDAI/F&A/GDL/CPM/045/02/2020]


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.