In order to complement the government’s objective of providing ease of doing business and enhanced consumer protection, Pakistan’s first-ever centralized information repository has been established for the life insurance sector.
The repository that will function under the regulatory impetus of SECP will hold critical data of life insurance policies electronically.
Aamir Khan Chairman SECP, Shaukat Hussain Commissioner Insurance, Moin M Fudda Chairman Centralized Depository Company (CDC), Badiuddin Akber Chief Executive Officer CDC, senior officials from SECP, CDC, CEOs and representatives of life insurers, non-life insurers, and relevant stakeholders attended the launching ceremony.
Chairman SECP Aamir Khan in his keynote address said the initiative will augment technological advancement in the insurance industry while ensuring facilitation and protection of policyholders. He hoped that it will facilitate effective settlement of insurance claims and cause a reduction in mis-selling and policy churning.
“We, at the SECP, are very mindful of our responsibilities as a progressive regulator that needs to help the industry to develop and grow, and simultaneously, create linkages between its regulated sectors and the real economy,” Khan said and underlined that the centralized documentation of data in digitalized form is critical to achieving transparency, speed, and cost-effectiveness.
He informed participants that the SECP had already embarked upon a transformational journey of digitalization through its recently launched initiative – ‘Leading Efficiency through Automated Prowess (LEAP).
This will enable 100 percent end-to-end automation, complete integration with multiple government agencies for one-time registration, and digitalization and storage of financial statements of companies through the introduction of Extensible Business Reporting Language (XBRL).
The Centralized Repository will enable electronic storage of life insurance and family takaful policies and serve as central point for critical policyholder related information.
It will aid the underwriting function of the insurers to determine the appropriateness of an insurance policy, the level of insurance coverage and affordability of the insurance policy for the customer which will ultimately result in need-based selling and substantial reduction in mis-selling.