Application of Corporate Governance Principles in Non-Life Insurance Companies by Legal Requirement

Abstract

This Article is a part of the Thesis titled “Good Governance Principles in the Laws relating with Non-Life Insurance Business”. It aims to indicate that application of corporate governance principles is deemed as engagement of regulator’s power which is required to apply in consistent with principle of legitimacy of law. In order to determine the administrative framework under the corporate governance principles required by the regulator to non-life insurance companies, the regulator needs to apply principle of fiduciary duty, accountability and transparency and adopts them with an internal administrative structure of non-life insurance companies, roles and responsibilities of directors and managements, delegation of power, transparent procedures for consideration and decision, settlement of conflict of interests, setup of effective auditing and balancing of power execution. Also, the regulator has its role to encourage for acceptance and practice by, and disseminates to the public, by its objective to maintain stability of non-life insurance business operation, and protect stakeholders in sustainability.