SECP to improve regime for insurance brokers
- September 27, 2013, 6:18 pm
- National News
- 100 Views
ISLAMABAD, Sep 27 (APP): The Securities and Exchange Commission of
Pakistan (SECP) has proposed draft amendments to the 2002 Insurance Rules,
affecting the licensing of direct insurance brokers.
The proposed amendments have been published in the official gazette of
Pakistan to elicit public comments, said a statement issued here on Friday.
The amendments deal with the exclusivity of the insurance broking
license, paid-up capital requirements, requirement to maintain a net asset
value, registration and renewal fees, statutory deposit requirements,
professional indemnity insurance requirements and fit and proper criteria for the directors and chief executives of insurance brokers.
Compared to similar jurisdictions, the current regulatory regime for
insurance brokers in Pakistan is relatively underdeveloped and framework, has been reviewed in the light of evolving market practices and global regulatory developments, it added.
The regulatory regime for insurance brokers in Pakistan consists of
the provisions prevailing from the primary law of the Insurance Ordinance of 2000 and the rules made thereunder.
Currently, there are nine registered insurance brokers, authorized to
undertake the direct insurance broking in Pakistan.
Commissioner Insurance, Mohammed Asif Arif said that with this move
the insurance broking practices in Pakistan would be conducted with more
sophistication and professionalism.
"This will also lead to the overall protection of policyholders and
further development of local insurance industry", he added.
