Page 17 - Life Insurance Today July - December 2020

4Ps of Corporate Governance 3. Prudent and profitable
investment of policyholder's
Corporate Governance funds while maintaining

solvency margin;
4. Sensitivity in terms of
social obligations, micro
People Purpose Process Performance
insurances and manner of
Y Investors Y Purpose Y Business Y Measurement advertisement & publicity
Y Employees Y Vision processes Y Bench marking etc.;
Y Customers Y Mission Y Integration Y Measuring and 5. Compliance to the legal
Y Lenders Y Objectives Y Organisation analysis and regulatory framework;
Y Suppliers Y Strategy Y Resources Y Diversification
6. Disclosures of different
Y Consultants Y Plans Y Supply chain Y Quality
types to the Regulator
Y Local people Y Day to day Y Energy assurance periodically.
Y Auditors Fire fightings Y Crisis Y Compliance
Y Risk assurance Core of Corporate
Y Compliance Y Whistle blowing Governance is Corporate
management Social Responsibility, Board
of Directors & the
Fig 3: 4Ps of Corporate Governance
Corporate Management is
Money management is an important skill that can depicted below:
invariably convert our goals into reality. Insurers need to
familiarize themselves on the various options and make
realistic decisions about their present and future
affordability volitions while maintaining certain norms in
their discrete professional accounting. Here comes the
importance of corporate governance in such service
oriented financial institution like any insurance company.

Corporate Governance in Life Insurance
Parlance:
It relates to-
1. Protecting policyholder's interests by reasonable
charging of premium;
2. Objectivity in settling claims;

Figure 4: Core of Corporate Governance

Insurance is also subject to what is known as regulatory
governance as - since Indian insurance industry deals with
public funds and here Policyholders protection is
paramount. There are restrictions on investments and
expenses by the life insurers, regulating solvency norms,

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