Playing by the rules

ENAR

Whether the title is general manager or chief executive, or the role is niche player or regional rover, the best way to dress for survival as an insurance company in the Middle East is clad in proper corporate governance. According  to the International Association of Insurance Supervisors (IAIS), the global umbrella organization for regulatory bodies in the industry (Lebanon is a member), insurance providers should have a corporate governance framework installed, and company managers and boards have a duty to prove their integrity              and competency. The reality for Lebanese and regional insurers is perhaps inching, but certainly not speeding, toward alignment with this paradigm. The majority of local players appear to shy away from the cost of corporate governance. Family-owned insurers, as most are in Lebanon, do not face pressure from their stockholders to scrutinize their directors, audit their figures or publish key ratios.