Insurance surveyors: SECP suggests overhauling regulatory framework

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed a comprehensive overhaul of the regulatory framework for insurance surveyors, including mandatory licensing for claims above specified thresholds, strict deadlines for survey reports, enhanced professional qualifications and penalties of up to Rs1 million for non-compliance.

The proposals have been outlined in the SECP’s concept paper, “Strengthening the Regulatory Framework for Insurance Surveyors”, which seeks initial stakeholder feedback and consultation before detailed amendments to the Insurance Rules, 2017, are developed and potentially issued for public consultation.

Under the proposed framework, insurers would be required to appoint licensed insurance surveyors for motor insurance claims exceeding Rs50,000 and non-motor insurance claims exceeding Rs100,000. Surveyors would have to be appointed within 72 hours of claim intimation, while insurers or surveyors would be required to communicate documentation requirements within seven days.

The SECP has proposed submission of survey reports within 15 days for motor claims and 30 days for non-motor claims. Extensions would be allowed only in exceptional circumstances, subject to an aggregate cap of six months, with extensions for individual motor claims limited to 30 days. Surveyors would also have to submit interim progress reports every 30 days after the deadline until the final report is submitted.

The proposed rules would introduce a comprehensive code of conduct requiring surveyors and authorised surveying officers (ASOs) to maintain integrity, impartiality and professional independence, disclose conflicts of interest, protect confidential information and retain complete records for at least five years. They would also be prohibited from participating in the payment or settlement of claims and salvage.

Policyholders could be allowed to appoint licensed surveyors at their own expense where provided for in the insurance policy. Insurers would be required to consider their findings during claim assessment and settlement, subject to prescribed conditions. Policyholders would also be entitled to object to a surveyor’s appointment on valid grounds, including conflicts of interest or previous disputes.

The Commission has proposed enhanced qualification requirements, including a bachelor’s degree in engineering for engineering surveyors and a bachelor’s degree in agriculture for agricultural surveyors. A six-month transition period has been proposed for the new qualification and practical experience requirements. First-time applicants seeking registration as ASOs would also be required to pass the prescribed qualification examination, withdrawing the existing examination exemption for certain qualified individuals.

Under the proposed professional indemnity insurance regime, surveyors with annual revenue of up to Rs10 million would be required to maintain minimum coverage of Rs1 million per event, while those earning more than Rs10 million would need coverage of Rs3 million per event. The minimum number of ASOs required for licensing a corporate insurance surveyor would also increase from one to two.

The proposals further envisage at least 24 hours of annual continuing professional development training for directors, chief executive officers and ASOs, along with annual returns within four months of the financial year-end covering surveys conducted, fees charged, delayed reports and overdue payments.

Non-life insurers would be required to introduce board-approved surveyor management policies covering enlistment, allocation of assignments and performance monitoring. Surveyors would also be subject to penalties of up to Rs1 million, with an additional penalty of up to Rs10,000 per day for continuing default.

The SECP has also proposed requiring insurers to pay surveyors’ fees promptly in accordance with agreed terms, while introducing stronger oversight to improve transparency, professional independence and the quality of insurance claim assessments.

Copyright Business Recorder, 2026