Corporate Governance in Insurance Sector and The Impact of Corporate Governance Committee

A decade ago the term “Corporate Governance” was largely an academic jargon. Today, the term is familiar to almost everyone. Unfortunately, its familiarity in the society comes because of revelations of one shocking corporate scandal after another: executive pilfering from their firms; accountants helping companies reframe their financial numbers; analysts irresponsibly hyping stocks. After the economic crisis, the reputation of corporate governance has changed dramatically. Many of the successful-known companies have swept away during the crisis. Boards are shown as the main responsible part of this consequence. Corporate governance committees, which have a critical part in corporate governance system, are discussed as a solution. Unlike banking, corporate governance committees are not mandatory in insurance sector. The purpose of this study is to examine corporate governance committees in insurance sector and provide some insight for companies. In this context, Turkish insurance companies which are listed in Istanbul Stock Exchange are examined concerning their corporate governance committees.