Kathmandu. The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance companies to link the salary packages of MDs, CEOs and other senior management staff to customer-centric outcomes (such as claims response and grievance resolution, as well as the overall financial health of the company). <\/p>\n
IRDAI has issued this directive by amending the Corporate Governance Regulations, 2024 for insurance companies. In a circular on salaries of key management employees, the regulator has specified the parameters that will form the basis of salary packages (including incentives) of MDs and CEOs, all other directors and other senior management officers. These new rules will come into effect immediately. <\/p>\n
IRDAI said in a statement that the changes in performance parameters are part of its ongoing commitment to strengthen customer confidence, improve transparency and enhance accountability across the sector. These parameters include financial strength, product performance, claims response, timely grievance resolution and removal of dark patterns from the websites of insurance companies and their distributors. <\/p>\n
According to the new directive, insurance companies will also be required to disclose their performance with respect to the parameters used to pay the remuneration of all top managers. Some mandatory disclosures should be made on a quarterly basis. Whereas others should be done monthly. The company’s website should be viewed “easily accessible” and “easy to understand” without asking for visitors’ personal information, such as phone numbers. <\/p>\n
Companies will now have to disclose financial information on a quarterly basis. However, it is mandatory to provide information related to product performance, claims process and grievance resolution on a monthly basis. <\/p>\n
Mr. Ajay Seth, Chairman, IRDAI, said, “Changing customer expectations and the needs of the economy has led to a greater emphasis on customer outcomes, transparency in decision-making, accountability and sustainable value creation. “The revised performance framework will move away from traditional operational and financial metrics and focus more on customer-centric and governance-oriented results,” he said. <\/p>\n
The updated performance framework, with an emphasis on customer result orientation, has empowered boards to focus on improving customer satisfaction and experience indicators, timely resolution of claims and complaints, reducing repetitive complaints and service failures, and delivering fair, transparent and customer-friendly processes. IRDAI has made it clear that its objective is to enhance transparency and accountability through timely, consistent and accurate disclosure of comparative information to insurance companies for the current and last 3 years. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance companies to link the salary packages of MDs, CEOs and other senior management staff to customer-centric outcomes (such as claims response and grievance resolution, as well as the overall financial health of the company). IRDAI has issued this directive by amending the […]<\/p>\n","protected":false},"author":16,"featured_media":202261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-300883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/300883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=300883"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/300883\/revisions"}],"predecessor-version":[{"id":300884,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/300883\/revisions\/300884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/202261"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=300883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=300883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=300883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}