Good Governance

GOOD GOVERNANCE

This pillar recognizes insurance providers who have gone beyond the requirements of the regulations and have taken to heart the needs of all stakeholders, including their staff, customers, shareholders, and the community in general.

Available Categories for 2019 are: 

1. Academy of the Year

The “Academy Award” category aims to identify high quality providers based on criteria who demonstrate best practices in delivering professional education and training to their sales and support staff in the following areas: value—training opportunities with a strong commitment to supporting diversity and inclusion, display of talent acquisition, retention, and low attrition rates; processes—for clear performance indicators that are not purely tied to revenues, but also safeguard the customers against mis-selling activities; and innovation—demonstrating creativity and innovation for the learning process across the board.

2. Corporate Governance

The “Corporate Governance” category aims to identify high-quality providers based on criteria which have a robust governance framework, infrastructure and an operating model that addresses the critical functions of board’s role, responsibility and compensation, risk culture, people and talents, processes and technologies, and maintaining a diverse board of directors.  In addition to complying with the IA’s GL10 guideline, how is the board’s oversight on risk and the culture of the organizations, committee policies and practices, and commitment to a diverse board and their principles in managing both internal and external stakeholders’ interests?  

3. Compliance Excellence

The “Compliance Excellence” category aims to identify high quality providers who go beyond the most minimal regulatory requirement, and proactively build an effective defense system for internal control that well prepares the organization to face unanticipated market events and disruptive trends. The key criteria in this category includes at the examination of how compliance integrates with the various business functions, the role and responsibility of the CCO, process and methodology, regulatory alignment, compliance risk assessment and mitigation, new product development and training, the firm’s IT and technology framework on reporting and data collection, plus the transparency between the business owners, process owners and audit. 

4. Risk Management

The “Risk Management” category aims to identify high-quality providers who have best-in-class risk control infrastructures.  The criteria call for companies to demonstrate their foresight and visions on developing risk functions on balancing the old and new skills, employing digital innovation while mitigating concerns derived from cyber attacks, protection of data privacy, and the vulnerabilities emerged from automation, digitization and global expansion of the digital ecosystems. The judges will also review the governance protocol for decision-making processes and how risk management is applied to the integration with other business functions, from the front office to the back.  

5. Human Capital Development

The “Human Capital Development” category aims to identify insurance companies’ ability to attract, retain, and develop human capital based on their provision of benefits, training and development programs, and employee engagement.  More specifically, whether the company provides social contribution through job creation, can minimize attrition on human intellectual capital, key person risk, and turnover. The panel looks at metrics to measure employees’ satisfaction, fair compensation for non-officer and non-sales staff, clear lines of promotion, and policies to address labor-management relations, discrimination, and workforce diversity? And finally, evaluation of the percentage of women among new hires, in the total workforce, in senior management roles and women directors on board. 

6. Sustainability and ESG

The “Sustainability and ESG” category aims to identify insurance companies who embrace transparency and operate a sustainable business through taking a best-in-class risk management and social responsibility approach in Environmental, Social and Governance (ESG), more so for listed insurers, whether the company voluntarily complies with the minimum GRI and HKEX guideline on reporting. Assessment includes reviewing the insurer’s strategic approach with its value chain, including responsible engagement policies with stakeholders, risk monitoring and assessment, and associating opportunities with ESG issues. It is also the purpose of this category is to recognize sustainable insurers who aim to reduce risk and making a proactive approach to participate in the ‘green’ revolution in the financial markets and to develop innovative solutions, improve business performance while contributing to ESG sustainability.