ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued Bancassurance Regulations 2015 to facilitate the stakeholders of life insurance business, including policyholders, insurers and the agents.
The regulations were notified after the approval of SECP’s policy board. Various new regulatory measures, like rationalisation of bank’s remuneration structure, restriction on recycling of life insurance policies, commission claw-back provision, minimum cash values, minimum financial underwriting parameters and mandatory after sale call-back requirements have been introduced.
Under the Bancassurance business, there are quite a few problems as measured by low renewal persistency. The level of minimum financial protection component of the insurance products was also low.
Besides this there was no minimum persistency benchmark which was necessary to shift the focus of the bank to servicing the existing policyholders.
