KARACHI: The Policy Board of the Securities and Exchange Commission of Pakistan (SECP), approving an amendment to the SECP (Insurance) Rules 2002, has enhanced the minimum paid-up capital requirement for both non-life and life insurance companies by Rs200 million.
A new Rule 9 has been inserted under which the baseline paid-up capital requirement for non-life and life insurance companies has been prescribed as Rs500 million and Rs700 million, respectively.
Further, the amount of minimum paid-up capital will be net of any discount offered on issue of shares. These new capital requirements will be applied in a phased manner and the existing insurance companies will be allowed a period of two years, until December 31, 2017, to meet the said requirement.
At the time of the enactment of the Insurance Ordinance, 2000, the minimum paid-up capital requirements for non-life and life insurance companies were Rs80 million and Rs150 million, respectively.
