Water Services Act, 1997
R 385
Long Term Insurance Act, 1998 (Act No. 52 of 1998)Board NoticesNotice on Governance and Risk Management Framework for Insurers, 2014Part 4 : Risk Management System13. Remuneration policy |
| (1) | For purposes of this section, the term "remuneration" has the meaning as defined in section 30(6) of the Companies Act. |
| (2) | An insurer's remuneration policy must— |
| (a) | not induce excessive or inappropriate risk taking and be consistent with the long-term interests of the insurer and the interests of its policyholders; |
| (b) | at a minimum, address the remuneration of directors, managing executives, heads of control functions and other persons whose actions may have a material impact on the risk exposure of the insurer (including persons to whom functions are outsourced); |
| (c) | be consistent with the insurer's business and risk management strategy (including the insurer's risk management practices), and performance; |
| (d) | apply to the insurer as a whole in a proportionate and risk-based way and contain specific arrangements that take into account the respective roles of persons referred to in paragraph (b); |
| (e) | provide for a clear, transparent and effective governance structure around remuneration, and the oversight of the policy; |
| (f) | when remuneration includes both fixed and variable components, provide that— |
| (i) | the fixed portion represents a sufficiently high portion of the total remuneration to avoid over dependence on the variable components; |
| (ii) | the variable component is based on a combination of the assessment of the individual and the collective performance, such as the performance of the business area and the overall results of the insurer; and |
| (iii) | the payment of the major part of a significant bonus, irrespective of the form in which it is to be paid, contains a flexible, deferred component that considers the nature and time horizon of the insurer's business; and |
| (g) | ensure that in defining an individual's performance, that financial and non-financial performance are considered. |
