INSURANCE CONDUCT RISK GOVERNANCE
Insurance Conduct Risk Governance
Board oversight of mis-selling, customer outcomes, complaints, incentives, product suitability and the management signals that precede conduct failures.
Board
LEVEL GOVERNANCE FOCUS
Insurance
SECTOR-SPECIFIC OVERSIGHT
Global
NORTH AMERICA • MIDDLE EAST • ASIA
Direct Answer
Insurance conduct risk is the risk that business practices produce unfair or unsuitable customer outcomes. For boards, the important question is not whether a complaint occurred; it is whether product design, incentives, distribution, disclosure, claims or management culture created the conditions for repeated poor outcomes.
Who This Is For
Built for boards that need decision-quality evidence and sector judgment.
Insurance boards, risk and conduct committees, CEOs, distribution leaders, product leaders and customer-outcome teams.
Board Risks Addressed
Key Takeaway
Repeated mis-selling is usually a governance signal, not a salesperson-only problem.
Key Takeaway
Complaints are lagging indicators; boards need earlier conduct signals.
Key Takeaway
Product design, incentives and distribution controls should be assessed as one system.
Board Support
Board-level conduct risk framing
Customer-outcome and mis-selling governance challenge
Root-cause questions across product, distribution, incentives and claims
Executive accountability and escalation design
Questions Directors Should Ask
Question 1
What leading indicators suggest customer outcomes are deteriorating before complaints rise?
Question 2
Which products or channels generate repeated suitability or disclosure exceptions?
Question 3
Who owns root-cause remediation when conduct failures cross functional boundaries?
Frequently Asked Questions
What is conduct risk in insurance?
Conduct risk is the risk that insurer or intermediary behaviour leads to unfair, unsuitable, misleading or otherwise poor customer outcomes.
Why should insurance boards treat mis-selling as a governance issue?
Repeated mis-selling can reflect product design, incentives, target pressure, training, disclosure, channel controls or management culture. Those are governance and executive-accountability issues.
What should boards monitor for conduct risk?
Boards should monitor complaints, cancellations, persistency, suitability exceptions, incentive patterns, claims outcomes, remediation trends and root-cause ownership.
Board Opportunity
If this issue is live in your boardroom, share the mandate context directly.
For board appointments, NED opportunities or focused governance mandates, include the institution, market, board or committee requirement and timing.