The Insurance Commission revised the rules on the appointment of independent directors of insurance companies, insurance brokers, mutual benefit associations, pre-need companies and health maintenance organizations to ensure good governance and protect their clients.
The policy change set enhanced requirements on the membership qualifications and disqualifications of an individual to become an independent director of IC-regulated entities, change in term limits of independent directors and sanction for non-compliance.
The new circular set new minimum qualification requirements of independent directors who should be at least a college graduate or have been engaged or exposed to the business of the corporation for at least five years. Another requirement is that he or she should possess proven integrity, probity, and independence.
“The engagement of independent directors would encourage objectivity in the decision-making process of a corporation,” Insurance commissioner Dennis Funa said in a statement.