KARACHI: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday said that it has approved the draft of the proposed Insurance Bill, 2016 for eliciting public comments for the purpose of stakeholder consultation.
According to a press release, the SECP earlier briefed Finance Minister Ishaq Dar about the changes required in the insurance regulatory framework. Dar had advised to start a nationwide consultation with stakeholders on the proposed insurance regulatory framework.
Accordingly, in October 2016 the SECP held consultative roundtables in Karachi, Islamabad and Lahore with insurance sector stakeholders.
The draft Bill 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), address entity specific and systemic risks by phased shift towards Risk Based Supervision (RBS) and Risk Based Capital (RBC) Regime and to address the regulatory gaps in the existing law.
The significant reforms suggested include the introduction of dedicated microinsurers, provisions for regulation of takaful and re-takaful, regulation of local and foreign reinsurance business for enhancement of local capacity.
Published in The Express Tribune, December 29th, 2016.