Securities and Exchange Commission of Pakistan consults stakeholders on reforms in insurance regulatory framework

Islamabad, October 24, 2016 (PPI-OT):The Securities and Exchange Commission of Pakistan has held a roundtable at the Institute of Chartered Accountants of Pakistan, Karachi, on the proposed reforms in the insurance regulatory framework. Representatives of insurance companies, insurance brokers, associations of insurance surveyors, Pakistan Societies of Actuaries and the Institute of Chartered Accountants of Pakistan attended the roundtable. Mr. Farrukh Rehman, the chairman of the subcommittee on insurance and an ICAP Council Member, emphasized the need for upgrading insurance law to bring it in line with the best international practices.

The executive director, Insurance Division SECP, gave an overview of the insurance industry in Pakistan and briefed the audience on the proposed amendments. He said the amendments are expected to improve the financial soundness of insurance companies and help develop a robust and financially stable insurance sector where policyholders’ interests are better protected. They will provide a conducive regulatory environment to encourage market development and ensure alignment with the Insurance Core Principles (ICP) of the International Association of Insurance Supervisors (IAIS).

Deliberations were carried out with the participants in respect of the new concepts and/or amendments which may be made to various areas. The areas include the introduction of dedicated microinsurers, provisions for regulation of takaful and retakaful, regulation of local and foreign reinsurance business for enhancement of local capacity, regulation of reinsurance brokers, flexibility for introduction of new intermediaries, introduction of concept of web aggregators, insurance repository, requiring insurers to develop and offer certain insurance products, provision for introduction of industry wide guarantee fund to address systemic risk, requirement of “appointed actuary” and product filing for non-life insurance.

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254