Insurers to reveal number of insurance claims pending and disposed of, says IRDAI circular

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IRDAI) on Wednesday released a master circular on corporate governance for insurers.Although the circular becomes effective upon issuance, the insurance companies are given time up to June 30, 2024 before they are mandated to adhere to the provisions of this 70-page circular. The latest set of instructions carries a set of disclosure requirements, among a number of other requirements, for insurance companies.

ALSO READ | Health Insurance for senior citizens: How the no age restriction new rules will benefit the elderly— ExplainedThese provisions tell the board to ensure that the information with respect to the following is disclosed in the annual accounts.Insurers need to disclose the following:1) Commission and expense ratios: Quantitative and qualitative information on the insurance company’s financial and operating ratios, viz. incurred claim, commission and expenses ratios.2) Solvency margin: Actual solvency margin details vis-à-vis the required margin.3) Persistence ratio: Insurers engaged in life insurance business need to disclose the persistence ratio of policies sold by them.4) Growth rate: Financial performance including growth rate and current financial position of the insurance company.5) Risk management: They also need to give a description of the risk management architecture.6) Number of claims: Details of number of claims intimated, disposed of and pending with details of duration.7) All pecuniary relationships or transactions of the Non-Executive Directors vis-à-vis the insurance company will also be disclosed in the Annual Report.8) Elements of remuneration package (including incentives) of MD & CEO and all other directors and key management persons.9) Payments made to group entities from the