Now that India has opened up its insurance market fully to FDI, over-regulation mustn’t play spoilsport
In this context, recent talk of tighter compensation norms for insurer CEOs assumes relevance. The Insurance Regulatory and Development Authority, which regulates the sector, already has a set of guidelines for private insurers. Aimed at aligning pay packages with risk, these cover how the variable part must be awarded—tied to performance, i.e., but with such provisions as a clawback option for deferred-pay incentives in case a failure comes to light later.
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