IRDAI asks insurers to play active role in corporate governance of investee firms

The IRDAI has asked insurance companies to play an active role in order to ensure high level of corporate governance standards in listed companies. IRDA in its revised guidelines on stewardship code for insurers in India said, “The state of governance of the investee companies is an important aspect and insurance companies must ensure that investee companies maintain corporate governance standards at high level.” “Insurance companies should play an active role in the general meetings of investee companies and engage with the managements at a greater level to improve their governance,” it said. “This will result in informed decisions by the parties and improve the return on investments of insurers, which will ultimately benefit policyholders,” IRDAI said.