Corporate governance in insurance sector with special reference to mandatory board committees
Dr. Hema Gupta, Dr. Anu Jain
Due to the competitive environment in the insurance sector, good corporate governance is required not only for the benefit of the shareholder and other stakeholders, but also for the interest of the company itself. Effective corporate governance can increase the faith the investors have in the insurance company and therefore the company can have access to capital and other forms of financing. It also ensures that the policies and strategies formulated by the board who act on behalf of the stakeholders, are efficiently executed. To protect the interest of the policyholders Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines which are to be followed by all insurers. The present study focuses on analysing implementation of the revised guidelines issued by IRDAI in 2016 regarding formation of Board Committees and to compare corporate governance score of General Insurance Corporation and Bajaj Allianz General Insurance Company regarding formation of Board Committees. For this annual reports of 2016-17 of the selected companies were used. The result show that Bajaj Allianz has a better disclosure score in comparison to GIC. It is suggested that GIC, as it is a major public sector company in general insurance, should be more attentive and concerned on the aspects of corporate governance regarding mandatory Board Committees.
Dr. Hema Gupta, Dr. Anu Jain. Corporate governance in insurance sector with special reference to mandatory board committees. International Journal of Commerce and Management Research, Volume 4, Issue 2, 2018, Pages 62-66