Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Board NoticesNotice on Governance and Risk Management Framework for Insurers, 2014Part 3 : Composition, Governance and Structure of the Board of DirectorsBoard of directorsCommittees of the board7. Risk and remuneration committees |
| (1) | Despite section 6, an insurer must establish a risk committee and a remuneration committee. |
| (2) | A risk committee must comprise of at least three members that include executive and nonexecutive directors, and perform, at least, the functions as set out in section 8. |
| (3) | A remuneration committee must comprise of at least three members of the board of directors of which the majority must be non-executive directors and perform, at least, the functions as set out in section 9. |
| (4) | The chairperson of both the risk and remuneration committee must be an independent director of the board of directors. |
| (5) | If a separate risk committee, a separate remuneration committee or both these committees are not established the board of directors must— |
| (a) | notify and motivate the non-compliance with subsection (1) to the Authority; and |
| (b) | ensure that the functions of these committees are performed by the audit committee (despite the composition requirements set out in subsections (2) and (3)) or another committee approved by the Authority. |
| (6) | Despite subsection (5), the Authority to ensure the prudent management of the insurance business and protection of the interests of policyholders may instruct the board of directors to— |
| (a) | establish one or both of these committees; or |
| (b) | change the composition of either or both of the committees. |