SECP holds roundtable on proposed reforms in insurance regulatory framework

941

ISLAMABAD, Nov 1 (APP): After conducting the first roundtable session in Karachi, the Security Exchange Commission of Pakistan (SECP) has held second and third roundtable in Islamabad and Lahore respectively, for deliberations on the proposal of SECP aimed at strengthening the insurance regulatory framework.
The roundtable in Islamabad was held at the SECP head office, whereas, the venue in Lahore was the Lahore Chambers of Commerce and Industry, said a press statement issued here on Tuesday.
Both sessions were very well received and were attended. At the aforesaid roundtables, the Commissioner – Insurance, SECP, welcomed the participants and discussed the need for revamping the primary insurance law.
The Executive Director, Insurance, briefed the audiences on the proposed amendments in the insurance regulatory legal framework.
The proposed amendments are designed to improve the financial soundness of insurance companies and to help develop a financially stable insurance sector where interests of policyholders are adequately.
The amendments are aimed at providing the conducive regulatory environment to encourage market development, which also ensures alignment with the Insurance Core Principles (ICP) of the International Association of Insurance Supervisors (IAIS).
In line with the vision of developing financially stable insurance sector and to protect the interests of policyholders, detailed deliberations were carried out with the participants in respect of the new concepts and/or amendments which may be proposed in various areas, including 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.
The participants of both the roundtables were asked to submit their written comments in respect of the proposals for consideration of the SECP within 15 days, so that the project can be carried forward in a timely manner.