Securities and Exchange Commission of Pakistan straightens out public sector insurance entities

Islamabad, April 11, 2013 (PPI-OT): The SECP, the apex insurance regulator of the insurance sector, took stock of the irregularities at the NICL due to the absence of the board of directors for the last three years. Consequently, in March 2013 the Ministry of Commerce issued a notification whereby a full functioning board of directors was appointed. In the absence of the BOD, the NICL was unable to carry out its legal and statutory functions. After the proper constitution of its board, the company is expected to resolve its long pending issues.

In addition, the Pakistan Reinsurance Company Limited, the only reinsurance company in Pakistan, had not been managing its book of accounts on sound lines. The external auditors have been consecutively qualifying the accounts of company for over a long period of time on the matter of reconciliation of accounts with the other insurers.

Taking a serious notice of the situation, the SECP advised the management to treat the matter as a top priority. At the SECP’s constant intervention, for the first time the annual accounts of the company for 2012 have been audited without any such qualification.

The SECP actions will go a long way towards building the confidence of the policyholders, shareholders and other stakeholders as well as towards promoting good governance.

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: +9251 921 4005 or 921 4009 (Ext. 378)
Fax: +9251 920 6459
Cell: +92302 855 2254