Amman – Social insurance expert Musa Al-Subaihi confirmed that he views the boards of directors of security and insurance institutions as being responsible for ensuring financial sustainability and protecting the rights of generations from political, economic and financial fluctuations.

Al-Subaihi stated that, given the huge amounts of money managed by these institutions, modern global practices have tended towards adopting strict standards in selecting members in a certain way.

The following is the text of what Al-Subaihi wrote:

How do we develop the governance of the Social Security Institution’s Board of Directors?

​The boards of directors of social security and insurance institutions are viewed as safety valves for these institutions, as they are primarily responsible for ensuring financial sustainability and protecting the rights of generations from political, economic, and financial fluctuations.

Given the large amounts of money managed by these institutions, modern global practices have tended towards adopting strict criteria in selecting members as follows:

​First: Shifting towards the “Triple Representation Plus (+)” model:

The International Labor Organization (ILO) and the International Social Security Association (ISSA) recommend developing the traditional model to ensure balance, by integrating the following categories:
1) The government: as the sovereign and compatible cover for the state’s financial, social and economic policies.

2) Employers: as the primary financiers of the insurance system.

3) Workers (participants): to ensure the protection of the interests and rights of beneficiaries.

4) Independent members (experts): They are the “plus” or qualitative addition, and their mission is to give priority to the public good and the interests of generations over narrow factional interests, with their professional expertise.
​Second: The specialized skills required:

“Representation” alone is no longer sufficient. Board members (or some of them) must possess good technical expertise, such as: Actuarial expertise: to understand long-term financial expectations. ​Investing and managing assets to maximize returns and minimize risks. ​Risk management to deal with economic crises and demographic challenges. Governance and law to ensure full compliance and transparency.
Third: Standards of merit and integrity

​To ensure the Council’s effectiveness, Best Practices has established basic requirements for Council membership, including: ​Financial Integrity: Members undergo rigorous testing to ensure the cleanliness of the financial record.
The absence of conflicts of interest and ensuring that there are no personal interests that intersect with the organization’s decisions.

Having sufficient time for active participation, and staying away from “protocol” attendance. ​Professional independence: protecting investment and insurance decisions from any “politicization.”
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Protecting and developing subscribers’ funds and formulating effective policies for the future rights and interests of generations begin with the prudent selection of members of the Board of Directors within a framework in which professionalism must prevail over representation, and the national interest must prevail over abstract factional interests.

The above-mentioned modern, balanced standards and representation can be reflected in our legislation, and we must ensure that the prospective law amending the Security Law includes the appropriate legal formula for the aforementioned standards and representation.
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