Board Committees

Ethics, HR, Remuneration and Nomination

Ethics, HR, Remuneration and Nominations Committee Responsibilities

The Ethics, HR, Remuneration and Nominations Committee is responsible for:

(a) proposing a remuneration approach and related policies;
(b) preparing remuneration reports and disclosures on compensation practices, on an annual basis but at least prior to the convening of the annual general meeting for the immediate preceding year;
(c) reviewing and making recommendations to the Board of directors regarding the specific remuneration, retirement, succession planning of the Board members, the CEO, senior management and key officers;
(d) reviewing and approving training need assistance at all levels of the organization;
(e) establishing code of business and corporate ethics that are circulated to all the staff members;
(f) implementing the Board’s policy on Board’s renewal so that the Board individually and collectively continues to maintain target skill levels and independence;
(g) making recommendations to the Board with regard to the nomination for appointment or reappointment of members of the Board consistent with appropriate criteria established in their profile and any succession plans;
(h) ensuring proper orientation of Board members in respect of their responsibilities; and
(i) establishing a mechanism for the formal assessment of the effectiveness of the Board as a whole as well as the contribution of individual Board members along with ongoing training to fulfill their role requirements.

Investment Committee

Investment Committee Responsibilities

The Investment Committee is responsible for:

(a) setting investment policies (subject to approval of the Board) and guidelines, including policies and guidelines regarding asset classes, asset allocation ranges, and prohibited investments in compliance with regulatory requirements;
(b) overseeing investment and reinvestment of the funds and maintenance of adequate solvency as laid down under Insurance Ordinance 2000 and rules framed thereunder;
(c) monitoring the management of the funds by reviewing written reports from investment staff and by discussions with investment staff at Committee meetings that focus on the primary determinants of returns, including asset allocation and investment strategy;
(d) evaluating investment performance based on a comparison of actual returns and benchmarks as the Board or Committee may from time to time select. The evaluation will take into account compliance with investment policies and guidelines and risk levels;
(e) conducting a quarterly performance evaluation of the Committee and report its findings to the Chairman of the Board.

Audit Committee

Audit Committee Responsibilities

The Audit Committee is responsible for:

(a) recommending the appointment of external auditors by the Company’s shareholders and shall consider any question of resignation or removal of external auditors, audit fees and provision by external auditors of any service to the Company in addition to audit of its financial statements;
(b) determining appropriate measures to safeguard the Company’s assets;
(c) reviewing preliminary announcements of results prior to publication;
(d) reviewing quarterly, half-yearly and annual financial statements of the Company, prior to their approval by the Board of Directors, focusing on: (i) major judgmental areas; (ii) significant adjustments resulting from the audit; (iii) the going-concern assumption; (iv) any changes in accounting policies and practices; (v) compliance with applicable accounting standards; and (vi) compliance with statutory and regulatory requirements;
(e) facilitating the external audit and discussion with external auditors of major observations arising from interim and final audits and any matter that the auditors may wish to highlight (in the absence of management, where necessary);
(f) reviewing management letter issued by external auditors and management’s response thereto;
(g) ensuring coordination between the internal and external auditors of the Company;
(h) reviewing the scope and extent of internal audit and ensuring that the internal audit function has adequate resources and is appropriately placed within the Company;
(i) consideration of major findings of internal investigations and management’s response thereto;
(j) ascertaining the internal control system including financial and operational controls, accounting system and reporting structure are adequate and effective;
(k) reviewing the Company’s statement on internal control systems prior to endorsement by the Board of Directors;
(l) instituting special projects, value for money studies or other investigations on any matter specified by the Board of Directors, in consultation with the Chief Executive and to consider remittance of any matter to the external auditors or to any other external body;
(m) determination of compliance with relevant statutory requirements;
(n) monitoring compliance with the best practices of corporate governance and identification of significant violations thereof; and
(o) consideration of any other issue or matter as may be assigned by the Board of Directors.

Managment Committees

Risk Management and Compliance Committee

Risk Management Committee Responsibilities

The Risk Management Committee is responsible for:

(a) overseeing the activities of the Risk Management function of the Company, and making appropriate recommendations to the Board;
(b) assisting the Board in implementation of the decision taken by the Board to mitigate probable risks falling within the scope of the risk management function;
(c) assessing, quantifying, monitoring and controlling the nature, significance and interdependence of the risk (at individual level and aggregate level) to which the Company is or may be exposed and shall also manage them accordingly;
(d) ensuring that the Company’s Risk Management system is well integrated into its organization structure, decision making process and corporate culture and that there is a clear link to other functions;
(e) assisting the Board in its oversight of the risk profile, Risk Management framework and the risk reward strategy determined by the Board;
(f) reviewing and approving the Company’s Risk Management policy including risk appetite and risk strategy;
(g) reviewing the adequacy and effectiveness of risk management and controls;
(h) assisting in oversight of management’s process for the identification of significant risks across the Company and the adequacy of prevention, detection and reporting mechanisms;
(i) reviewing Company’s compliance level with applicable laws and regulatory requirements that may impact the Company’s risk profile;
(j) periodically reviewing changes in the economic and business environment, including emerging trends and other factors relevant to the Company’s risk profile;
(k) reviewing and recommending approval of the Board risk management procedures and controls for new products and services.

Claim Settlement Committee

Claims Settlement Committee Responsibilities

The Claims Settlement Committee is responsible for:

(a) establishing, implementing and maintaining the claims processing time;
(b) claims monitoring and ensuring the transparency, fairness and equality;
(c) reviewing and analyzing periodically the feedback & complains obtained through the mechanism;
(d) reviewing claims for suggesting corrective underwriting measures;
(e) ensuring that salvage sales made are at their optimum price and with transparency.

Underwriting Committee

Underwriting Committee Responsibilities

The Underwriting Committee is responsible for:

(a) reviewing periodically the policies and guidelines governing the Company’s insurance and reinsurance underwriting;
(b) reviewing periodically the policies and guidelines regarding the Company’s agent, broker, insured, ceding Company, and reinsurer counterparty risk in connection with its insurance and reinsurance underwriting activities;
(c) evaluating the Company’s professional and development plans for key insurance and reinsurance underwriting and actuarial functions;
(d) performing such other responsibilities regarding the Company’s insurance and reinsurance underwriting activities or policies or other matters as the Board may from time to time assign the Committee.

Reinsurance and Co-Insurance Committee

Reinsurance and Coinsurance Committee Responsibilities

The Reinsurance and Coinsurance Committee is responsible for:
(a) monitoring on an ongoing basis the processes and procedures, policies and guidelines, counterparty risk and risk appetite of the Company;
(b) ensuring adequate reinsurance protection available to the Company;
(c) monitoring exposure to reinsurer and ensuring the reinsurance placements are not concentrated to minimise credit risk;
(d) performing such other responsibilities regarding the Company’s insurance and reinsurance underwriting activities or policies or other matters as the Board may from time to time assign the Committee;
(e) monitoring that proper commission are charged on outward cessions.