CDC, insurance, takaful: companies sign MoU to reduce fraudulent practices
Central Depository Company of Pakistan Limited (CDC) has signed a Memorandum of Understanding (MoU) with Life Insurance and Takaful companies of the country to implement a Centralised Information Sharing Solution for Insurance Industry (CISSII).
Copyright Business Recorder, 2013
The signing ceremony was held at CDC House, which was attended among others by senior officials of CDC, life insurance companies and SECP. On this occasion, Chairman State Life Insurances Corporation of Pakistan Shahid Aziz Siddiqi, CEO CDC Mohammad Hanif Jakhura and Commissioner Insurance Division - SECP Mohammad Asif Arif were also present. The life insurance companies signed MoU with CDC include State Life Insurance Corporation of Pakistan, EFU Life Assurance, Jubilee Life Insurance Company, MetLife Alico Pakistan, Adamjee Life Insurance Company, Pak-Qatar Family Takaful and Dawood Family Takaful Ltd.
During the ceremony all companies agreed in principle that a Centralised Information Sharing Solution for the Insurance Industry (CISSII) should be developed to bring in greater efficiencies and transparency in the industry for sharing of critical information to reduce fraudulent practices damaging the insurance industry in general and insurance companies in particular. Shahid Aziz Siddiqi, Chairman State Life Insurance Corporation of Pakistan said that CISSII is a first step towards mitigating risks and screening of bogus claims.
"All information about fraudulent and bogus claims would be made available through CISSII for signatory insurance and takaful companies in order to mitigate risks of fraudulent claims", he said, adding that similar kind of project has been running in India and other countries. "Exchange of information between companies would also discourage bogus insurance agents," he added.
Central Depository Company has been entrusted by Securities and Exchange of Pakistan (SECP) to undertake and implement a Centralised Information Sharing Solution for Insurance Industry (CISSII) as part of the plan to develop a comprehensive roadmap to promote a financially sound and technologically efficient insurance industry in Pakistan.