Auto & General Insurance (Singapore) Pte. Limited (“the Company”) is committed to enforce good corporate governance to ensure that the Company’s business is managed in a safe and sound manner. The Board of Directors is responsible for setting the Company’s corporate strategy, reviewing the managerial performance and maximising returns for shareholders at an acceptable level of risk, while preventing conflicts of interest and safeguarding the interests of the policyholders.
The Company’s Board of Directors comprises of 5 members. The Chairman is the Deputy Chairman of BHL Holdings Limited (Guernsey), which is the Company’s ultimate holding company. There are two independent directors on the Board to provide objective judgement on corporate affairs independently. The remaining two members are the CEO of the Company, and the CEO of Asia Pacific Group overseeing the group of companies in the region.
The Board of Directors delegates the responsibility for formulating sound and prudent policies and practices to the Senior Leadership Team, who is then accountable to the Board for the day-to-day conduct of the business and affairs of the Company. The Senior Leadership Team comprises of the CEO, and the various Heads and Functional Leads responsible for their departments of the Company.
Enterprise Risk Management
The Company’s Enterprise Risk Management (“ERM”) framework is established in line with the Group’s risk management strategy. It details the governance structure in relation to the monitoring, management, control and reporting of risks within the Company’s business operations. The Board is responsible for overseeing the ERM framework and setting of the risk appetite. Under the Company’s ERM framework, the material risks to its business are summarised as follows:
- Strategic Risk – This is the risk of loss or impact to revenues and earnings as a result of the implementation of poor strategic decisions
- Financial Risk – This is the risk of loss or impact to financial results and returns as a result of financial modelling, methods or management. Under this umbrella, the Company further identifies the following risks:
- Credit Risk - This is the risk of default of borrowers and transactional counterparties as well as the loss of asset value from the deterioration of credit quality;
- Asset & Liability Risk - This is the risk of adverse movements in the relative value of assets and liabilities due to changes in general market factors, such as interest rates, inflation and where relevant, foreign exchange rates; and
- Liquidity Risk - This is the risk of insufficient liquidity to meet all cash outflow commitments to policyholders (and other creditors) as and when they fall due.
- Insurance Risk – This is the risk of loss or impact resulting from inadequate or inappropriate underwriting, claims management, product design, pricing, and reinsurance management.
- Operational Risk – This is the risk of loss or impact as a result of inadequate or failed internal processes, people (human factors), systems, or from external events.
- Legal & Regulatory Risk – This is the risk of loss or impact as a result of legal and/or regulatory sanctions, material contracts, or internal policies.
- Group Risk – This is the risk that the Company may be adversely affected by an occurrence (financial or non-financial) in another entity of the Group.