SECP holds stakeholders’ consultation session to review changes in insurance regulatory framework governing Bancassurance

KARACHI: Bancassurance has been contributing towards the growth of the insurance sector by increasing insurance penetration and addressing financial inclusion in the Pakistan.

SECP has in the past issued guideline in 2010 and subsequently Bancassurance Regulations, 2015. Due to the recent bearish performance of the stock market, the insurance policyholders have suffered short term losses due because most of the products sold to bancassurance is unit linked in nature.

Therefore to provide impetus to development of insurance market, particularly the Bancassurance, the SECP has developed amendments in the Bancassurance Regulations, 2015 and holds a stakeholders’ consultation session on June 12 at Karachi this year.

The session was attended by the State bank of Pakistan (SBP), insurance companies, Federal Insurance Ombudsman (FIO) and members of the Small Dispute Resolution Committees.

The participants thoroughly discussed the proposed changes and appreciated the SECP for taking such initiatives.

However, the industry participant placed emphasis that SECP should give due consideration to the market development aspects as well as increasing regulatory controls for protection of the policyholders’ interest.

The participants stated that under the current economic conditions SECP should also give consideration to ease of doing business.