Cap. 403 Art. 18ISystem of governance.

(1) Authorised insurance and reinsurance undertakings shall be required to have in place an effective system of governance which provides for sound and prudent management of the business of the undertaking. The system of governance requirements shall be laid down in Insurance Rules.

(2) An authorised insurance and reinsurance undertaking shall:

(a) ensure that all persons who effectively run the undertaking or have other key functions, at all times, satisfy the fit and proper criteria;

(b) have in place an effective risk management system, including a risk management function;

(c) as part of its risk management system, conduct its own risk and solvency assessment;

(d) have in place an effective internal control system, which shall include a compliance function;

(e) provide for an effective internal audit function;

(f) provide for an effective actuarial function; and

(g) if it outsources any of its functions or any insurance or reinsurance activities, remain fully responsible for discharging all of its obligations under this Act.

(3) The systems and functions referred to in sub-article (2) shall be determined by Insurance Rules.

(4) The system of governance shall be proportionate to the nature, scale and complexity of the operations of the authorised insurance or reinsurance undertaking.