SECP Issues Life Insurer License to Postal Life Insurance Company
The Securities and Exchange Commission of Pakistan (SECP) has granted a life insurance license to Postal Life Insurance Company Limited, to act as a life insurer under the Insurance Ordinance, 2000. Established in 1884, PLI has been working as an attached agency of Pakistan Post.
In order to bring improvement in its governance structure and enhance its outreach and stakeholder’s confidence, the government has decided to bring PLI under the regulatory purview of SECP.
The license under Insurance Ordinance will make PLI subject to compliance with SECP’s regulatory frameworks of corporate governance, insurance standards and AML/CFT protocols etc. Similarly, the applicability of regulatory standards would transform PLI into a modern life insurer which can fully utilize its vast branch network of Pakistan Post across the country.
This milestone has been achieved due to exemplary coordination of various stakeholders such as the Ministry of Finance, Ministry of Communication, Pakistan Post, Postal Life Insurance, the Financial Monitoring Unit (FMU) and SECP. The stewardship role played by the Ministry of Finance has been exemplary.
The corporatization and licensing of PLI will not only establish effective supervisory controls but also play a vital role towards an increase in insurance penetration levels in the life sector, owing to its large customer-base coupled with an established distribution network throughout Pakistan.