|Remuneration policy - Recent requirements for insurers, reinsurers and health insurance companies|
Remuneration policy - Recent requirements for insurers, reinsurers and health insurance companies
Which entities (hereinafter referred to as "Relevant Entities") must comply with Ordinance № 43?
• Insurers licensed to conduct insurance business under the Insurance Code;
• Reinsurers, licensed to conduct insurance business under the Insurance Code;
• Branches of insurers from third countries holding a license to operate under the Insurance Code;
• Health insurance companies licensed to operate under the Health Insurance Act.
What are the basic requirements towards Relevant Entities under the Ordinance № 43?
• Relevant Entities must adopt, by 12 February 2012, and implement a remuneration policy that covers all forms of remuneration such as salaries and other financial and/ or fringe benefits, including benefits related to voluntary retirement insurance and/ or health insurance;
• Corporate bodies which adopt and implement a remuneration policy are: the supervisory board (in the case of a two-tier management system), or the board of directors (one-tier of management), or the remuneration committee (for Relevant Entities whose securities are admitted to trading on a regulated market); or the control board (for insurance cooperatives);
• At least once a year the implementation of the policies and procedures for remuneration is to be subjected to independent internal review;
• Clear remunerations determination procedures should be available to concerned employees; the determination of remuneration must be properly recorded;
• Relevant Entities are required to disclose information on the remuneration policy and any subsequent changes thereof, in a clear and concise statement within the periodic disclosures in the annual financial statements or in another appropriate form.
What are the categories of personnel covered by the remuneration policy?
• Employees having a management role –members of the board of directors, the supervisory board, the control board, and other senior officers falling within the meaning of Article 57, paragraph 1, item 1 of the Insurance Code;
• Employees whose work is related to the taking of risks;
• Responsible actuaries, actuaries and employees who perform managerial functions;
• All other employees whose salaries are commensurate to the salaries of the employees listed above and whose activities significantly affect the risk profile of the Relevant Entity.