ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has issued a regulatory directive to the life insurers to file their products in accordance with the standardized submission requirements.
The existing insurance regulatory framework describes the broad type of product-related information to be submitted at the time of registration of a life insurer or at the time of introduction of new products or amendments to existing products.
Many new developments have taken place in the insurance sector after the promulgation of the 2000 Insurance Ordinance such as increasing trend of unit-linked products, emergence of bancassurance and other alternative distribution channels and the entry of family takaful operators. These developments have necessitated more guidance from the regulator to streamline the product submission process.
In addition to bringing standardization to the product submission process, the new regulatory directive is also aimed at ensuring that products sold to the insurance customers are consistent with the product features and parameters submitted to the regulator. For this purpose, the directive requires the life insurer to submit a post-registration implementation certificate to the regulator before commencement of sales of a registered product. Such a certificate is required to be signed by the appointed actuary of a life insurer. The SECP believes that this directive will enhance the efficiency and effectiveness of product submission process.