Recently, the Financial Services Institution Bureau (FSIB) has selected new chiefs for the General Insurance Corporation of India (GIC Re) and National Insurance Company (NIC).
About Financial Services Institution Bureau (FSIB):
- What is it? It’s a government body set up under the Department of Financial Services (DFI) by replacing the Bank Board’s Bureau (BBB).
- It is headed by a chairman who is nominated by the central government
- The board would comprise the Secretaries of the DFS, the chairman of IRDAI, and a deputy governor of the RBI.
- Additionally, it will have three part-time members who are experts in banking and three more from the insurance sector.
The Primary role of FSIB:
- To identify manpower capabilities and ensure proper selection of talent for senior positions at financial institutions owned by the government.
- It is entrusted with making recommendations for the appointment of full-time directors and non-executive chairmen of state-run financial services institutions.
- The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by the Prime Minister.
- It would also issue guidelines for selecting general managers and directors of public sector general insurance companies.
- It will also be involved in formulating and developing business strategies for state-run banks and helping them in their fund-raising plans.
- It would also monitor and assess the performance of public sector banks, government-owned financial institutions and insurance companies.
Q1) What is Insurance?
Insurance is a contractual agreement between an individual or an entity (the policyholder) and an insurance company (the insurer). It is designed to provide financial protection against specific risks or losses in exchange for regular premium payments.