Today’s regulatory bodies in the UK financial services sector place considerable and increasing demands and expectations upon Non-Executive Directors (NEDs).
Codes of corporate governance, regulations, rule-books and best practice manuals abound, but few exist in one place to offer insurance NEDS (or iNEDs) information that will readily help them to fulfil their onerous duties.
The Worshipful Company of Insurers has addressed this issue by offering this web-based, comprehensive Information Bank, specifically designed for existing or potential NEDs across the UK insurance industry.
It places great emphasis on providing practical help to NEDs; so this guide has adopted a “Question and Answer” approach.
This Information Bank draws attention to the key requirements of a NED and begins with an understanding of the role.
It then asks a series of questions that are relevant “before joining a Board of Directors”. It concentrates on a range of responsibilities “during their time as a NED”. It also addresses some of the problems that might arise “after the NED has been appointed”.
This time-line is organised into five sections, each of which poses a number of questions.
Just click on each question and an answer will be revealed.
Where appropriate, electronic links to websites containing the original source materials, or to authoritative commentaries, have been included.
Simply click on the menu bar at the top of the page to access the following topics:
1. Understanding the Role:
What does the role involve?
What is the NED taking on?
What are a NED’s legal responsibilities?
2. Before Becoming a NED:
So you want to be a NED?
What are the qualities that a good NED should possess?
Have you got the requisite skills?
3. Making Sure:
I have had an approach. What due diligence should I undertake?
What should a NED ask for?
How are NEDs authorised?
What material items should be in the NED’s Service Contract?
4. The Board in Action:
I’m on the Board. What should I be looking for?
What constitutes good corporate governance?
What are the basic technical knowledge requirements?
How should a Board develop an appropriate culture and values?
I have a problem. What should I do?
What are the penalties for non-compliance or failure?
What help can a NED obtain?
Current issues that are pertinent to NEDs are addressed within the programme of iNED events run by The Worshipful Company of Insurers (WCI). Summaries of the most recent iNED Forums and Workshops are to be found within the “Latest News” section of the bespoke iNED feature within the WCI’s website: www.wci.org.uk