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Corporate governance of insurance firms after Sovency II

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  • Siri, Michele

Abstract

Under Solvency II, corporate governance requirements are a complementary, but nonetheless essential, element to build a sound regulatory framework for insurance undertakings, also to address risks not specifically mitigated by the sole solvency capital requirements. After recalling the provisions of the second pillar concerning the system of governance, the paper is devoted to highlight the emerging regulatory trends in the corporate governance of insurance firms. Among others, it signals the exceptional extension of the duties and responsibilities assigned to the Board of directors, far beyond the traditional role of both monitoring the chief executive officer, and assessing the overall direction and strategy of the business. However, a better risk governance is not necessarily built on narrow rule-based approaches to corporate governance.

Suggested Citation

  • Siri, Michele, 2017. "Corporate governance of insurance firms after Sovency II," ICIR Working Paper Series 27/17, Goethe University Frankfurt, International Center for Insurance Regulation (ICIR).
    • Handle: RePEc:zbw:icirwp:2717
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    References listed on IDEAS

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    Cited by:

    1. Dina Manolache Aurora Elena, 2019. "Stress and scenario tests in the context of a Romanian non-life insurance company," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 149-161, May.

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    More about this item

    Keywords

    Insurance; Corporate Governance; Board of Directors; Culture; Risk Management; Internal Controls; Principle of Proportionality; Regulation; EIOPA; Solvency; Guidelines;
    All these keywords.

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