Pakistan insurance watchdog unveils reforms
The insurance industry watchdog in Pakistan has taken the first steps towards what could become a fundamental overhaul of its regulatory regime for the insurance industry in the country.
The Securities and Exchange Commission of Pakistan (SECP) recently unveiled a proposed roadmap of reform and development for the insurance industry in Pakistan. It includes specific recommendations for the growth and development of the insurance industry.
“Globally, it has been observed that the business of insurance is experiencing dramatic changes that pose unprecedented challenges both to insurers and regulators,” the SECP said in a statement.
“There is a need is to seek greater efficiency through organizational and operational restructuring, stronger focus on core competencies and to preclude greater financial risks and uncertainties in the minds of various stakeholders. The committee deliberated in depth on the potential reform areas, including regulatory reforms, operation challenges in life and non-life insurance, market development issues, insurance education and awareness and technology development.”
Mohammed Asif Arif, the insurance commissioner for the country, said: “The pace of development is prompting numerous regulatory and market reforms as there is a compelling need to deliberate on the policy and regulatory issues to accommodate the market changes and bring local insurance industry at par with the international standards. The report has been drafted with research and learning, drawing on international experiences, stakeholders’ consultation and representation, and is meant to provide direction for future reform process.”
The SECP also recently unveiled new rules for the governance of microinsurance in the country. The reforms set minimum standards for the conduct of such businesses.
