SECP proposes more insurance tribunals, digital complaint system

The Securities and Exchange Commission of Pakistan (SECP) has recommended increasing the number of Insurance Tribunals and Small Dispute Resolution Committees (SDRCs), along with establishing an integrated digital complaint system to improve grievance redressal for policyholders across the country.

The recommendations were presented in SECP’s report, “Strengthening Insurance Grievance Redressal in Pakistan: Current Status and Strategic Way Forward,” which reviewed existing mechanisms for resolving insurance-related complaints.

According to the report, the existing grievance mechanisms collectively received 37,029 complaints in 2025.

SECP recommended that the Ministry of Law and Justice increase the number of Insurance Tribunals based on geographical needs, publish a list of Sessions Courts designated as Insurance Tribunals and ensure timely appointment of tribunal members.

The regulator also proposed expanding the scope and geographical coverage of SDRCs, periodically reviewing their financial thresholds and digitising their operations through online complaint submission and document sharing.

To improve coordination among grievance forums, SECP recommended a formal mechanism for sharing information and consolidating complaint data between the SECP, Federal Insurance Ombudsman, Wafaqi Mohtasib, Insurance Tribunals, SDRCs and insurance companies.

The report further recommended including complaint volumes, resolution rates, disposal times and emerging trends in the Insurance Industry Statistics Report to support evidence-based regulatory oversight.

To address overlapping jurisdictions, the SECP proposed legal and administrative measures to transfer complaints concerning public-sector insurers to the Federal Insurance Ombudsman, in line with an understanding reached among relevant authorities.

It also recommended that grievance forums publish complaint-resolution timelines and that insurers clearly inform policyholders about available grievance procedures.

The report called for a coordinated public-awareness campaign and a stronger role for the Insurance Association of Pakistan in promoting consistent complaint-handling practices across the insurance industry.

SECP Chairman Dr Kabir Ahmed Sidhu said stronger coordination and greater use of technology could help reduce complaint-resolution times and improve accountability.

“Through stronger coordination and the use of technology, we aim to reduce complaint-resolution times, improve accountability and ensure that every policyholder has access to an effective grievance redressal forum,” he said.

The report provides an action-oriented framework assigning proposed measures to relevant stakeholders to improve access to grievance redressal and the overall policyholder experience.