IRDAI links insurer KMP pay to policyholder outcomes
Insurer boards must link KMP variable pay to policyholder outcomes and publish monthly or quarterly performance disclosures
IRDAI
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Change
IRDAI amended its Corporate Governance Master Circular to require insurers to link KMP remuneration to financial soundness, product performance, claims, grievance redressal, Ind AS implementation and dark-pattern removal.
Why it matters
The circular turns customer-outcome metrics into mandatory inputs for KMP variable pay and public disclosure. Insurers must publish three-year comparable performance data, disclose claims, product and grievance metrics monthly, and ensure FY 2026-27 remuneration policies assign 50% weight to the six mandatory parameters.
Implications
- — Insurer boards and Nomination and Remuneration Committees must revise KMP remuneration policies for FY 2026-27 so that 50% of performance assessment is based on the six mandatory IRDAI parameters.
- — Insurer compliance and company-secretary teams must publish KMP-remuneration-linked performance data on the company website with three-year comparables and the required monthly or quarterly disclosure cadence.
- — Insurer product, claims, grievance, finance and digital teams must produce measurable data for product performance, claim responsiveness, grievance redressal, financial soundness, Ind AS implementation and dark-pattern removal to support remuneration assessment and disclosure.
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