SECP issues draft Actuarial Valuation Rules, 2025 for public consultation

September 12, 2025 (MLN):  The Securities and Exchange Commission of Pakistan (SECP) has issued the draft Actuarial Valuation Rules, 2025, for public consultation which introduces a new framework for the valuation of insurance contract assets and liabilities across both Life and Non-Life Insurance and Takaful businesses.

The Rules have been developed in line with the International Association of Insurance Supervisors’ (IAIS) Core Principles and international actuarial practices, in consultation with the Pakistan Society of Actuaries (PSoA).

They also incorporate risk-based capital and supervisory regimes, supporting the SECP’s broader objectives of digitization, transparency, and innovation under its five-year strategic plan, “Journey to an Insured Pakistan.”

The draft framework aims to standardize and align actuarial valuation practices with international markets.

 Key provisions include gross premium valuation for long-term insurance and takaful businesses, updated reserving methodologies for short-term businesses, adoption of principle-based actuarial assumptions, improved data quality standards, and enhanced submission requirements.

SECP Chairperson emphasized that building a vibrant and sustainable insurance sector is central to the Commission’s strategic vision.

 “We are guided by a commitment to core principles that ensure a level playing field: championing competition and market openness, removing barriers such as legal monopolies, privatization, and ensuring our regulatory framework meets the highest international standards,” they stated.

The SECP noted that the adoption of updated actuarial practices will strengthen financial sustainability, protect policyholders’ interests, and enhance shareholders’ understanding and management of insurance businesses.

The draft Rules are available on the SECP website, with comments and suggestions invited within 30 days. Consultation sessions with industry stakeholders are also planned.

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