Corporate governance and social responsibility

The publication of the Higgs Report into the role and effectiveness of non-executive directors has important implications for the insurance industry – both in terms of the effectiveness and profitability of business, and in the wider realm of Corporate Social Responsibility (CSR) according to Simon Gallagher , insurance industry group partner at accountanting and insurance consultancy, Moore Stephens. However, the insurance industry needs to be careful not to miss the point – that the aim of any business initiative should be to deliver value to the shareholders and other stakeholders of the company. Value is rarely created through a rule-bound system of bureaucracy. Higgs and corporate governance generally has the ability to deliver real benefits, but if the insurance industry is to realise those benefits, it needs to take up the challenge of dealing with the spirit of what is proposed rather than focusing on the rules.