Life insurers and family Takaful operators: SECP maintains growth rate/inflation adjusted growth rate scenarios
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) Tuesday maintained the growth rate/inflation adjusted growth rate scenarios for the life insurers and family takaful operators for 2021 for the benefits of the policyholders.
The SECP has issued Circular number 1 of 2021 here on Tuesday. According to the SECP, attention is invited towards clause 8.1, 8.2 and 11.1 of the directive for life insurance family takaful illustrations for 2016 vide SRO 255(I)/2016 dated March 25, 2016.
The SECP stated that the life insurers and family takaful operators use three growth rate scenarios and three inflation adjusted growth rate scenarios to demonstrate projected benefits to potential policyholders.
The SECP specifies these scenarios based on long-term interest rate outlook prevalent in Pakistan.
In this regard, the Commission in consultation with the Pakistan Society of Actuaries has decided that for the year 2021, there would be no change in the nominal rate of return and inflation adjusted rate of return as specified for the year 2020 through circular number 1 of 2020 dated January 23, 2020, the SECP maintained.
Accordingly, for the year 2021 and onwards, the nominal rate of return would remain at 8 percent, 10 percent and 12 percent and inflation adjusted rate of return would remain at 3 percent, 4 percent and 5 percent, the SECP added.
Copyright Business Recorder, 2021
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