The insurance industry is changing in response to a wide range of social, technological and global economic forces.
The last two decades have resulted in considerable growth in the life insurance sector due to the emergence of new distribution channels such as Bancassurance and certain technology-based channels.
However, the share of the insurance industry of Pakistan in its overall economic activities remains considerably low compared to its international counterparts. Therefore, in order to focus on market development of the insurance sector in Pakistan, the SECP is contemplating a comprehensive road map and engaging with all stakeholders in the public and private sectors.
SECP has also undertaken internal restructuring to focus on market development and growth-conducing policymaking. For this purpose, the commission has redefined its internal objectives by recognizing the specific and thematic objectives for the supervision of the insurance sector.
SECP has restructured the Insurance Division into three independent departments: Supervision Department, Enforcement Department, and Market Development and Policy and Regulation Department.
The specific objectives of these departments focus on entity-level regulation, supervision, macro-prudential regulation (group-wide), anti-money laundering/countering financing of terrorism, consumer protection and inclusive market development.
The thematic objectives include incorporating proportionality in all aspects of the regulation, recognizing the technological needs of the industry and promoting the use of regulatory technology (RegTech) in the insurance industry and enhanced focus on the principles for sustainable insurance.
Moreover, in order to strengthen the knowledge and skill base of the Insurance Division to cope with the growing needs of the insurance sector, the SECP has also introduced an educational policy to encourage its employees to obtain an insurance-related qualification in the areas of actuarial sciences and operational aspects of the insurance business.