The Insurance Development and Regulatory Authority (IDRA) has eased the eligibility and experience criteria for appointing chief executive officers (CEOs) by amending the Insurance Company Chief Executive Officer Appointment Regulations, 2012, aiming to address the long-standing CEO shortage in the insurance sector.
As a result, senior officials of the General Insurance Corporation and the Life Insurance Corporation, along with additional managing directors and deputy managing directors of insurers, are now eligible for appointment as CEOs.
The amended rules have also relaxed eligibility criteria for individuals serving in senior management positions at internationally reputed multinational insurance companies.
Under the revised regulations, eligibility requirements have been eased for holders of recognised professional qualifications, including actuaries and fellows or associates of CPA, CFA, CLU, ICAB, ACCA and ICMAB, making it easier for highly qualified professionals to assume CEO roles.
The revised rules have extended the timeframe for submitting applications for CEO appointments or renewals, as well as for IDRA to communicate its decisions, to 60 days from the previous 15 days.
New provisions have also been added to bar corrupt CEOs from holding office. Individuals removed for abuse of power, corruption, money laundering or financial irregularities at any insurance company or financial institution, or whose CEO appointment or renewal applications have been rejected by IDRA, will not be eligible for employment at any other insurance company.
In a press release, IDRA said many insurance companies currently have vacant CEO posts due to a shortage of qualified personnel, despite several eligible officials serving as additional managing directors and deputy managing directors.
According to the regulator, the amendments have expanded the potential CEO pool and are expected to strengthen transparency and accountability in insurance companies, thereby boosting public confidence in the insurance sector.
