ISLAMABAD: In a bid to make insurance regulation effective for the sector, the Securities and Exchange Commission of Pakistan (SECP) has announced to release a consolidated set of insurance rules.
In this regard, the SECP has formulated draft Insurance Rules, 2015 which will replace the previously issued two different set of insurance rules after the due approval process and accommodating the stakeholders’ consultations.
Earlier, the Insurance Industry Reforms Committee Report 2014 also recommended consolidating the existing two set of rules which were creating ambiguity.
Currently, the first set of rules called the Insurance Rules, 2002 were notified by the Federal Government – Ministry of Commerce via SRO 498(I)/2002 dated August 7, 2002.
Whereas the second set of rules called the Securities and Exchange Commission (Insurance) Rules, 2002 were issued by SECP via SRO 938(I)/2002 dated December 12, 2002.
The consolidation of existing two set of rules has improved the insurance regulatory framework. Such refinements include amendment in Rule 35 of the SEC (Insurance) Rules, 2002 to improve the liquidity position of the insurers and examination of insurance surveying officer as a condition for registration as an ASO.
Furthermore, in order to increase the compliance level of insurers, an annual certificate on compliance of Section 11 and 12 of the Insurance Ordinance, 2000 has been made part of the draft rules.
