SECP proposes major reforms to improve insurance complaint resolution

September 22, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has recommended increasing the number of Insurance Tribunals and Small Dispute Resolution Committees (SDRCs) and establishing an integrated digital complaint system to improve the resolution of policyholders’ grievances nationwide.

The recommendations are outlined in SECP’s report, “Strengthening Insurance Grievance Redressal in Pakistan: Current Status and Strategic Way Forward.” The report reviews the existing grievance mechanisms, which collectively received 37,029 complaints in 2025.

SECP has recommended that the Ministry of Law and Justice increase the number of Insurance Tribunals according to geographical needs, publish a list of Sessions Courts designated as Insurance Tribunals and ensure the timely appointment of tribunal members.

The report also calls for expanding the scope and geographical coverage of SDRCs, periodically reviewing their financial thresholds and digitising their operations through online complaint submission and document sharing.

To improve coordination, SECP has proposed a formal mechanism for sharing information and consolidating complaint data among SECP, the Federal Insurance Ombudsman, Wafaqi Mohtasib, Insurance Tribunals, SDRCs and insurance companies.

Complaint volumes, resolution rates, disposal times and emerging trends should also be included in the Insurance Industry Statistics Report to support evidence-based regulatory oversight, the report recommends.

To address overlapping jurisdictions, the report suggests legal and administrative measures for transferring complaints concerning public-sector insurers to the Federal Insurance Ombudsman, in line with the understanding reached among the relevant authorities.

It also calls for grievance forums to publish complaint-resolution timelines and for insurers to clearly inform policyholders about available grievance procedures.

The report further calls for a coordinated public-awareness campaign and a stronger role for the Insurance Association of Pakistan in promoting consistent complaint-handling practices across the industry.

SECP Chairman Dr Kabir Ahmed Sidhu said that through stronger coordination and the use of technology, “we aim to reduce complaint-resolution times, improve accountability and ensure that every policyholder has access to an effective grievance redressal forum.”

The report provides an action-oriented framework assigning proposed measures to relevant stakeholders to improve access to redressal and the overall policyholder experience.

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