Mass. Regulator Seeks Insurers’ Executive Pay Data

Late last month, the Massachusetts Division of Insurance said it began an examination of executive compensation at insurers domiciled in the state.

The regulators said they have sent letters to 88 insurers requesting detailed information on how the companies determine compensations for board directors, trustees and officers as well as any employee who made over $100,000 per year in 2010 and 2011. The agency is also requesting from insurers all minutes and supplemental materials from board and compensation committee meetings where pay issues were reviewed.

The agency spokesman Dan Rosenfeld told Insurance Journal that the review is informational and that a report will be released at the end of the process.

“The Division of Insurance initiated this review to gather more detailed information as the state legislature contemplates additional corporate governance and reporting requirements for mutual companies. At the conclusion of the review, the Division of Insurance will issue a report.” Massachusetts Insurance Commissioner Joseph Murphy told Insurance Journal.

Executive compensation has been a closely watched topic across the country in recent years following the 2008 financial crisis.

The state regulators observed there’s been a lot of attention paid to the compensation issues recently and that regulators thought it was important to collect a little more data. Regulators said the only issue they are concerned with is whether the amount senior executives are paid could undermine a carrier’s financial health or hurt its ability to pay future claims.