Dar advises SECP to replace Insurance Ordinance

ISLAMABAD, Oct 2 (APP): Finance Minister Muhammad Ishaq Dar on Sunday advised the Security and Exchange Commission of Pakistan (SECP) to replace Insurance Ordinance, 2000 with the new Insurance Ordinance.

Chairing a meeting held here to review the amendments required in insurance regulatory framework he said, it will improve image of the insurance industry of Pakistan internationally.

He further advised SECP to start nation-wide stakeholder consultation in this regards and said that the proposed law may be processed as per the described procedure.

The Chairman SECP Zafar Hajjazi gave an overview of the insurance industry in Pakistan and briefed about the amendments required in the insurance regulatory legal framework.

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He informed the minister that SECP intends to hold stakeholder consultation in October 2016, adding that the amendments are expected to improve the financial soundness of the insurance companies.

It will also help develop robust and financially stable insurance sector where interest of policyholders are better protected, he added.

The proposed framework aims to provide the conducive regulatory environment to encourage market development, strengthen the regulatory framework to ensure alignment with the Insurance Core Principles (ICP) of the International Association of Insurance Supervisors (IAIS), he added.

The meeting was informed that the updated version of Draft Companies Bill 2016 had been submitted to Ministry of Finance after extensive consultation.

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