SECP Issues Draft Regulatory Framework For Digital-only Insurers And Micro-insurers
Sumaira FH Published June 16, 2021 | 08:32 PM
The Securities and Exchange Commission of Pakistan (SECP), as part of its agenda to promote digitalization and encourage innovation in financial services, has introduced draft registration regime for digital-only insurers and dedicated micro-insurers, for seeking public comments
ISLAMABAD, (UrduPoint / Pakistan Point News - 16th Jun, 2021 ) :The Securities and Exchange Commission of Pakistan (SECP), as part of its agenda to promote digitalization and encourage innovation in financial services, has introduced draft registration regime for digital-only insurers and dedicated micro-insurers, for seeking public comments.
The draft framework, proposed through amendments in Insurance Rules, 2017, sets out the registration requirements for entities desirous to operate through digital mode only, and for entities wanting to transact small ticket size insurance i.e. micro-insurance, said a press release issued here.
In addition, the draft also stipulates requirements relating to business conduct such as technological capacity, allowable classes of business, requirement to start pilot operations before full-scale launch, cyber-security, product filing requirements, fair treatment of customers, among others.
The initiative, based on global developments concerning insurers operating on digital-only basis, will be further complimented by recent developments in payment systems landscape. Moreover, the new framework does not prohibit existing entities to underwrite micro-insurance or distribute insurance through digital modes.
The objective of the proposed amendments is to encourage innovation, improve competition, widen product range, and enhance financial inclusion, while aiding in reduction of entry barriers through lenient regulatory requirements, in terms of minimum paid up capital and solvency regime.
The draft amendments, along with position paper illustrating the proposed framework, can be accessed at SECP's website https://www.secp.gov.pk/document/s-r-o-755i-2021-draft-amendments-to-the-insurance-rules-2017/?wpdmdl=42665
Related Topics
Recent Stories
HEC reviews curricula for environmental sciences degree programme
ICC Asia looking forward to an action-packed Asia Cricket Week
Yuvraj Singh named ICC Men’s T20 World Cup 2024 Ambassador
Greece hands Olympic flame to 2024 Paris Games hosts
Two Kyiv hospitals evacuating over feared Russian strikes
World must act on neurotech revolution, say experts
Charles & Catherine's cancer diagnoses
Champions Alcaraz and Sabalenka through in Madrid Open
King Charles to resume some public duties during cancer treatment: palace
US defense chief announces $6 bn in security aid for Ukraine
Heavy rains cause damage to Spezand-Taftan railway track
Woman stabbed in Israel, attacker killed: police
More Stories From Business
-
Finance minister reviews progress on FBR digitalization
54 minutes ago -
US stocks rebound on tech earnings, London hits new record
54 minutes ago -
US approves gene therapy treatment for hemophilia
40 minutes ago -
KATI president for inclusion of agri sector in tax net
40 minutes ago -
Ahsan chairs 13th CPEC-JCC preparatory meeting, reviews arrangements for high-level delegation’s v ..
2 hours ago -
Police to take every step for security of business community: IGP
2 hours ago
-
WB director, Planning minister discuss reforms in development projects
2 hours ago -
IP rights crucial in achieving SDG : Jam Kamal
4 hours ago -
FBR’s data protection efforts commended by OECD assessment team
4 hours ago -
US stocks rebound on tech earnings, London hits new record
4 hours ago -
SECP-IFSB workshop highlights Pakistan's progress in Islamic Finance Development
4 hours ago -
SBP to announce monetary policy on April 29
4 hours ago