The Bad PlaceTimes of India | Now, insurers must link pay of senior executives with performance
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The Insurance Regulatory and Development Authority of India (IRDAI) has issued a May 25 circular directing insurers to overhaul how senior executives are evaluated and compensated, tying their pay more closely to measurable customer outcomes, transparency, and governance rather than solely to financial and operational metrics. Insurers must now disclose standardized performance data on financial soundness, product performance, claims handling, grievance redressal and service quality, a move aimed at strengthening customer trust, reducing information asymmetry and enabling policy‑holders to make informed choices. According to IRDAI chairman Ajay Seth, evolving customer expectations and economic needs require greater emphasis on transparent decision‑making, responsiveness and sustainable value creation, prompting the regulator to shift focus toward measurable customer outcomes and accountable leadership.
Now, insurers must link pay of senior executives with performance
MUMBAI: The insurance regulator has directed insurers to realign how senior executives are evaluated and paid, linking performance more closely to customer outcomes, transparency, and governance, under a revised framework issued through a circular dated May 25.