Microinsurance: SECP to issue draft rules soon

Microinsurance is an insurance product that offers coverage to low-income households.

KARACHI:
The draft rules on microinsurance are expected to be prepared very soon in consultation with stakeholders issued by the Securities and Exchange Commission of Pakistan, according to a statement issued.  While realising the need of microinsurance and its huge potential economic impact on the target community, a seminar was arranged on Tuesday under the aegis of Pakistan Insurance Institute. Microinsurance is an insurance product that offers coverage to low-income households. Chief guest SECP Commissioner (Insurance) Muhammad Asif Arif in his opening address emphasised on the areas including the development of a regulatory framework and discussed examples of viable business cases for microinsurance. In Pakistan where insurance penetration is mere 0.7% of the Gross Domestic Product, it is anticipated that this initiative will help in creating a transparent and enabling environment, thereby increasing the insurance density and affordable outreach to low-income people.


Published in The Express Tribune, November 30th, 2011.
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