Management of insurance businesses: roles and responsibilities Flashcards
(16 cards)
Executive director
Work full time and are given management responsibility
Non-executive director
Part time and chosen for their expertise. Do not perform management
5 responsibilities of insurance board
- Regulation of exec directors to uphold shareholder interest
- Approve report / accounts / budgets / strategy
- Select, appraise, and reward CEO
- Oversee risk management process and ensure necessary actions are adopted
- Ensure integrity and principles of company are upheld
Corporate governance
Requirements on how companies are controlled by board and execs
UK Corporate Governance Code
Corporate governance standards for the UK
- Board composition
- Remuneration
- Accountability and audit
- Relations with shareholders
What does a Chief Risk Officer do?
Oversees risk strategy, appetite, and controls across the business.
What are the three lines of defence?
1st: Ops managers, 2nd: Risk/Compliance, 3rd: Internal audit.
What is a non-executive director?
A part-time board member who provides independent oversight.
4 key roles of management
planning, organising, leading, controlling
To whom does UK Corporate Governance Code apply?
UK listed companies only
Open door
Managers approachable by staff
Autocratic
Control and power with a single individual
Paternalistic
Company cares for employees in a fatherly way
Militaristic / hierarchical
Management structured in a formal way
Democractic
Decisions made with consult from staffC
Finance Director / CFO responsibilities
Amount of regulatory capital required
Stress testing (or CRO)
Proposals on form of capital
Claims provisions
Statutory accounts
Dividend payments
PRA requirements
Investment portfolio
Debt, cash flow, liquidity
