The Securities and Exchange Commission of Pakistan (SECP) on Thursday introduced a registration regime for digital-only insurers and dedicated to micro-insurers.
“This will promote digitalisation and improve customer convenience through instant provision of services,” it said.
In this regard, amendments to the Insurance Rules 2017 have been notified vide SRO 1513(I)/2022, said a press release.
The new framework is aimed at encouraging innovation, expanding product range, and promoting financial inclusion. The registration requirements have been designed to reduce barriers to entry, in terms of minimum paid-up capital and solvency requirements, it added.
The minimum capital requirement has been set at Rs100 million for non-life, digital-only business and Rs250 million for life, digital-only business, whereas for non-life and life micro-insurers, the capital requirement has been set at Rs80 million and Rs150 million respectively.
The framework requires the digital-only insurers to develop digital claim lodging and payment process since the inception of operations.
Published in The Express Tribune, August 19th, 2022.
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