(Chapter 2) Management of Insurance Businesses: Roles

The Board

The board is made up of executive directors and non-executive directors.

 Executive

• They work full time and have management responsibility 
• The board usually appoints one of the exec directors to the CEO and that person is acountable for the day-to-day runnings of the business
• The CEO or MD will appoint company management 

Non-Exec 

• They work part time and are chosen because of their expertise to provide an impartial view
• They do not have management responsibility
• They give their independent views on topics such as risk management and audit

Resposibilties of The Board

• Overseeing exec directors to ensure that they uphold shareholder interest and ensure business is compliant
• Setting strategy, determining policy, budgeting, approving accounts
• Selecting and appraising the CEO 
• Ensuring that the integrity and principles are upheld on issues such as financial reporting and the company's ethical standards.

Compliance with Corperate Governance

The UK Corporate Governance Code sets out the standards of good practice in relation to issues such as;

• Board composition and development
• Remuneration
• Accountability and Audit
• Relations with shareholders

Other Operating Structures

Trade Associations and educatioal bodies don't have the same set up because they don't have shareholders or a board of directors but…