June 14, 2019: The SECP held a roundtable to seek stakeholders’ suggestions and recommendations to revamp the 2015 bancassurance regulatory framework to achieve market development, enhance insurance penetration and protect policyholders’ interests.
A large number of representatives of insurance industry, officials of the State Bank, federal insurance ombudsman and members of the small dispute resolution committees attended the roundtable in Karachi. The participants deliberated upon various bottlenecks and issues hampering growth of the insurance sector and suggested solutions.
The tentative recommendations include mandatory contents of call-back confirmation, provision of documents in Urdu, rationalization of remuneration structure for banks, communication during policy cycle through policyholders’ preferred mode, automated need analysis, fit and proper criteria for head of bancassurance and training requirements for sales staff. The participants also proposed to revamp the procedure of issuance of insurance policies through digital modes and training through distance learning programs to provide ease of doing business to insurance companies.
The participants compared notes to achieve unanimity on various issues. The State Bank representatives said that they were fully committed to strengthening the framework and improving the supervisory process pertaining to banking industries.
The SECP officials requested the stakeholders to submit their proposals in writing as soon as possible.