Here is the converted article in Markdown format:
Insurers Face Minimum Attendance Rule, Resignation of Board Members at Stake
In a move aimed at promoting sound and prudent management, the [Regulatory Body] has introduced a new rule requiring insurance board members to maintain a minimum attendance record. The rule, which comes into effect immediately, stipulates that board members who fail to meet the minimum attendance requirement may be required to resign.
Overview of the New Rule
Under the new rule, board members are expected to attend at least 75% of board meetings and ensure their presence is disclosed in the annual report. This move is aimed at ensuring that board members are actively involved in the oversight of the insurer’s business and are committed to the best interests of policyholders and shareholders.
Key Requirements
- Board members must attend at least 75% of board meetings
- Attendance record must be disclosed in the annual report
- Failure to meet attendance requirement may result in resignation
- Board members must ensure they are informed of the insurer’s business condition and performance
- Insurers must establish board committees to oversee key areas of operations
Implications
The new rule is expected to have significant implications for insurance companies, particularly those with underperforming boards. The move is aimed at promoting a culture of accountability and transparency within the industry, and it is hoped that it will improve the overall governance and management practices of insurers.
Industry insiders have welcomed the move, saying that it will help to promote a more professional and accountable approach to board leadership. “This rule is long overdue,” said [Industry Expert]. “It’s essential that we have a strong and effective board in place to oversee the business and ensure that policyholders are protected.”
Conclusion
The new minimum attendance rule for insurance board members is a significant step forward in promoting good governance and sound management practices within the industry. The move is expected to improve accountability and transparency, and it will help to promote a culture of professionalism and excellence within the industry.