To facilitate insurance companies, the Securities and Exchange Commission of Pakistan (SECP) has reduced the annual supervision fee to be paid by an insurer and fee for initial authorization to act as an insurance broker.

According to the SRO 1227 (I)/2019 issued by the SECP here on Friday, every insurer registered under the Insurance Ordinance shall pay to the Commission, on or before January 15 in every calendar year, an annual supervision fee at the rate of Rs 1.6 per thousand of gross direct premium written in Pakistan during the calendar year preceding to the last year, subject to a maximum of Rs 50 million.

Under the revised rules, any application for issue of initial authorization to act as an insurance broker shall be accompanied by a fee of Rs 50,000, which shall be refunded in full by the Commission if the authorization is not granted. Previously, any application for issue of initial authorization to act as an insurance broker shall be accompanied by a fee of Rs100,000, which shall be refunded in full by the Commission if the authorization is not granted.

Copyright Business Recorder, 2019