KARACHI: Central Depository Company of Pakistan Limited (CDC) has signed a memorandum of understanding (MoU) with conventional and Islamic insurance companies for the development of a centralised information sharing solution for the life insurance industry, a statement released by the Securities and Exchange Commission of Pakistan (SECP) said on Friday.
The MoU was signed by CDC, State Life Insurance Corporation, EFU Life Assurance, Jubilee Life Insurance Company, MetLife Alico Pakistan, Adamjee Life Insurance Company, East West Life Insurance Company, Pak-Qatar Family Takaful and Dawood Family Takaful, according to the SECP, which facilitated the signing of the agreement as the regulator of the life insurance industry.
Held at the CDC House recently, the ceremony was attended by SECP Insurance Division Commissioner Mohammad Asif Arif, State Life Insurance Corporation Chairman Shahid Aziz Siddiqi and CDC CEO Muhammad Hanif Jakhura, among others.
Earlier, the SECP had constituted an insurance reforms committee to develop a comprehensive roadmap to promote a financially sound and technologically efficient insurance industry. Operational challenges that the committee identified included exposure of the life insurance industry to certain fraudulent practices of agents and other players because of lack of a formal information sharing mechanism.
The MoU is aimed at bridging this gap in the insurance industry, the statement said. It will also pave the way for a robust and technologically efficient insurance industry in the country.
The step is a first phase of a full-fledged insurance repository that is envisioned by the SECP and the life insurance industry. The scope of the project is being expanded to include general and health insurance companies as well, the statement added.
Published in The Express Tribune, March 23rd, 2013.
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