Insurance boards can expect their oversight and corporate governance processes to be tested by an array of challenges in the year ahead—including global economic volatility, cybersecurity risks, regulatory and enforcement risks, and social risks, such as pay equity and the tight talent market.
Drawing on insights from our latest surveys and interactions with directors and business leaders, we highlight nine issues to keep in mind as boards consider and carry out their 2023 agendas:
- Maintain focus on how management is addressing geopolitical and economic risks and uncertainty.
- Prepare to implement the Financial Accounting Standards Board’s (FASB) changes for Long Duration Targeted Improvements (LDTI).
- Reassess the board’s committee structure and risk oversight responsibilities.
- Keep ESG, including climate risk and DEI, embedded in risk and strategy discussions, monitor U.S. and global regulatory developments, and watch for National Association of Insurance Commissioners (NAIC) and New York State Financial Services (NYDFS) activities.
- Clarify when the CEO should speak out on social issues.
- Approach cybersecurity, data privacy, artificial intelligence (AI), NAIC and NYDFS related issues, and Long Duration Targeted Improvements (LDTI) holistically as data governance.
- Make talent, human capital management (HCM), and CEO succession a priority.
- Engage proactively with shareholders, activists, and other stakeholders.
- Think strategically about talent, expertise, and diversity in the boardroom.
On the 2023 Insurance board agenda