Insurance Newsletter – June 2016

REGULATORY UPDATES

REVISED GUIDELINES FOR CORPORATE GOVERNANCE FOR INSURERS IN INDIA ISSUED

The Insurance Regulatory Development Authority of India ("IRDAI") has, by way of a circular dated 18 May, 2016 issued revised Guidelines for Corporate Governance for insurers¹ in India ("CG Guidelines").

The CG Guidelines are intended to align corporate governance norms in the insurance sector with the (Indian) Companies Act 2013 ("Companies Act"). The CG Guidelines, amongst others, prescribe 'fit and proper' criteria for selection of the Board of Directors of an insurance company, mandate establishment of various committees for the discharge of significant corporate responsibilities, and provide for certain mandatory reporting and disclosure requirements for insurers.