Due to its comprehensive nature, the Sarbanes-Oxley Act (SOX) is being viewed as a de facto standard for corporate governance and financial reporting. It provides basic guidelines that insurers can use to measure the quality of their best practices regarding corporate governance and financial reporting. One of the driving factors behind SOX was to help gain back the public's confidence in the way that business is conducted. By emphasizing and instituting sound corporate governance practices and achieving corporate transparency, insurance companies can retain both the confidence of their investors and that of their customers.
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