ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is planning to hold consultations with the stakeholders over the proposed amendments to the insurance regulatory legal framework during the ongoing month.
This was disclosed by the SECP chairman in a meeting with Finance Minister Ishaq Dar here on Sunday. The SECP Chairman gave the minister an overview of the insurance industry in Pakistan and briefed about the amendments required to be introduced to the insurance regulatory legal framework.
Considering the magnitude and importance of the proposed amendments, the minister advised that the Insurance Ordinance, 2000 be replaced with a new Insurance Ordinance.
“This will improve image of the insurance industry of Pakistan internationally,” he opined.
Dar further advised SECP to start nation-wide consultations with the stakeholders in this regard. The SECP chairman informed the minister that SECP intended to hold talks with the stakeholders this month.
The amendments are expected to improve the financial soundness of the insurance companies and help develop a robust and financially stable insurance sector in which interest of the policyholders will be better protected.
The proposed framework is aimed at providing a 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 informed that the updated version of Draft Companies Bill 2016 had been submitted to the Ministry of Finance after extensive consultations.
Dar directed that the proposed law be processed as per the described procedure.
