ISLAMABAD: Considering the magnitude of and importance of the proposed improvements in the insurance regulatory framework, Finance Minister Ishaq Dar advised the Securities and Exchange Commission of Pakistan (SECP) to replace the Insurance Ordinance, 2000 with the new Insurance Ordinance.
He said this during a meeting with the Chairman Securities and Exchange Commission of Pakistan in Islamabad. It will improve image of the insurance industry of Pakistan internationally.
The finance minister further advised SECP to start nation-wide stakeholders consultation in this regards. The Chairman SECP informed that Securities and Exchange Commission of Pakistan intends to hold stakeholders consultation in October 2016.
During the meeting, the Securities and Exchange Commission of Pakistan chairman, in a meeting with the finance minister, gave him an overview of the insurance industry in Pakistan and briefed about the amendments required in the insurance regulatory legal framework.
The amendments are expected to improve the financial soundness of the insurance companies and help develop robust and financially stable insurance sector where interest of policyholders are better protected.
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).
The meeting was also informed that the Updated version of Draft Companies Bill 2016 had been submitted to Ministry of Finance after extensive consultation. Finance Minister directed that the proposed law may be processed as per the described procedure.
