Secp on Insurance Industry in Pakistan
Official Newsletter of SECP
Securities and Exchange Commission of Pakistan
The development of modern and efficient corporate sector and capital market, based on sound regulatory principles, that provide impetus for high economic growth and foster social harmony in the Country.
vision
November 2008 Autumn Edition
Volume VIII, Issue VI
The Chairman says... Editorial
Page 2
Insurance Industry of Pakistan
Development, Achievements & Initiatives he insurance sector, until end-2000, was under the regulatory purview of the Federal Ministry of Commerce. During that period, the private sector insurance industry was fragmented and suffered from operational inefficiencies, lack of professionalism and low unacceptable ethical standards, while the public sector insurance companies enjoyed their privileged status and captive business. During the regulatory regime of the obsolete Insurance Act, 1938, the insurance industry was infested with various issues. Capital adequacy requirements for general insurance companies were grossly inadequate, registration/supervision fees for insurers were modest, and the statutory solvency margins were based on outdated principles. A new insurance law was introduced in 2000 when the Insurance Act, 1938 was replaced with the Insurance Ordinance, 2000. The new law primarily aimed to ensure the protection of insurance policyholders’ interest and to promote sound development of the insurance industry. In the year 2001, the regulatory/supervisory responsibilities of the insurance sector were shifted from the Ministry of Commerce to SECP. Though the insurance industry in Pakistan is highly under-developed relative to its potential, it has shown a promising growth in premiums over past few years, as shown in the table below:
Page 3
Corporate Growth October 2008
Page 3
T
An Interview with ED HR&TD Mr. Mansur Ahsan
Page 5
News Flash from October 2008
Page 6
Corporate Change and Modern Technology
Page 7
Securities and Exchange Commission of Pakistan
The development of modern and efficient corporate sector and capital market, based on sound regulatory principles, that provide impetus for high economic growth and foster social harmony in the Country.
vision
November 2008 Autumn Edition
Volume VIII, Issue VI
The Chairman says... Editorial
Page 2
Insurance Industry of Pakistan
Development, Achievements & Initiatives he insurance sector, until end-2000, was under the regulatory purview of the Federal Ministry of Commerce. During that period, the private sector insurance industry was fragmented and suffered from operational inefficiencies, lack of professionalism and low unacceptable ethical standards, while the public sector insurance companies enjoyed their privileged status and captive business. During the regulatory regime of the obsolete Insurance Act, 1938, the insurance industry was infested with various issues. Capital adequacy requirements for general insurance companies were grossly inadequate, registration/supervision fees for insurers were modest, and the statutory solvency margins were based on outdated principles. A new insurance law was introduced in 2000 when the Insurance Act, 1938 was replaced with the Insurance Ordinance, 2000. The new law primarily aimed to ensure the protection of insurance policyholders’ interest and to promote sound development of the insurance industry. In the year 2001, the regulatory/supervisory responsibilities of the insurance sector were shifted from the Ministry of Commerce to SECP. Though the insurance industry in Pakistan is highly under-developed relative to its potential, it has shown a promising growth in premiums over past few years, as shown in the table below:
Page 3
Corporate Growth October 2008
Page 3
T
An Interview with ED HR&TD Mr. Mansur Ahsan
Page 5
News Flash from October 2008
Page 6
Corporate Change and Modern Technology
Page 7