Industry Questions/Comments
Need this be a separate report or could it just be part of the Finance Department’s report to the Audit Committee or included in the financials as a separate line item where appropriate? Or is there a particular format that is expected?
Central Bank of Trinidad and Tobago
Insurers are expected to manage their operational risk, including the risk of management or directors engaging in riskier conduct with policyholder funds motivated by the prospect of greater remuneration.
To manage that risk, the audit committee should be informed on the annual remuneration packages and make recommendations to address any risks that arise from the structure of compensation for management and board members.
For that reason, the report should be adequate to allow the audit committee to make a proper assessment of compensation structure and give recommendations accordingly. The audit committee may recommend what is required for it to fulfil its responsibilities effectively.
