Irdai links executive pay at insurers to elimination of unfair practices

The move is part of new KMP performance evaluation rules, under which the regulator has made 50% of key performance indicators (KPIs) mandatory and far more prescriptive than earlier, according to industry executives. For the remaining 50% weightage in performance assessment, the nomination and remuneration committee or board may assign additional role-specific parameters aligned with the insurer's business plan, with the metrics and evaluation criteria required to be clearly defined upfront in the remuneration policy.