SECP Policy Board approves key amendments to insurance regulations

News Image

By MG News | March 01, 2025 at 02:49 PM GMT+05:00

0:00

March 01, 2025 (MLN): The Securities and Exchange Commission Policy Board approved significant amendments to the insurance regulatory framework during a meeting held in Islamabad at the SECP Headquarters under the Chairmanship of Mr. Mehmood Mandviwalla.

These amendments include changes to the Insurance Rules, 2017, Insurance Accounting Regulations, 2017, and General Takaful Accounting Regulations, 2019.

The amendments are aimed at strengthening the insurance regulatory framework by enhancing industry resilience, addressing key sectoral challenges, diversifying capital sources, and streamlining reporting requirements.

A key amendment approved relates to an increase in the minimum capital requirements for life and non-life insurance companies.

Under the revised framework, non-life insurers must maintain a minimum paid-up capital of Rs2,000 million, while life insurers are required to meet a threshold of Rs3,000m, with a phased implementation timeline extending until 2030.

This enhanced capital requirement aims to strengthen the industry's risk absorption capacity, bolster financial stability, and provide greater protection for insurance policyholders.

Another significant amendment introduces an enabling framework for insurance companies to issue subordinated debt instruments and defines its treatment for solvency purposes.

This reform enhances insurers' financial flexibility by allowing them to explore alternative capital-raising avenues, strengthen their creditworthiness, and maintain additional regulatory capital.

By expanding access to additional capital, this amendment reinforces the long-term sustainability and resilience of the insurance sector, whilst aligning with SECP’s planned implementation of the Risk-Based Solvency Regime.

Further amendments approved relate to the standardization of recording advance and withholding tax in the financial statements of life insurance companies, according to the press release.

Additionally, the amendments address the concerns of the life insurance industry in respect of holding a specified percentage of government securities against advance/withholding tax, which has been relaxed.

In addition, amendments have been approved to the General Takaful Accounting Regulations, 2019, allowing non-life insurers with substantial Takaful operations to present their complete Takaful results alongside conventional results.

Supporting notes will offer a detailed breakdown of both conventional and window Takaful operations, ensuring greater transparency in financial reporting.

This change is designed to provide stakeholders with a clearer understanding of insurers’ financial performance and reinforce confidence in the sector.

The Securities and Exchange Commission Policy Board met in Islamabad at the SECP Headquarters under the Chairmanship of Mr. Mehmood Mandviwalla.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 127,456.75
81.58M
1.46%
1829.43
ALLSHR 79,365.98
238.73M
0.99%
781.27
KSE30 38,791.69
17.54M
1.67%
637.90
KMI30 186,313.79
25.96M
0.77%
1427.30
KMIALLSHR 54,103.32
124.11M
0.63%
339.52
BKTi 32,555.24
22.81M
1.98%
633.56
OGTi 27,735.38
1.10M
-0.14%
-38.60
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 107,480.00 108,105.00
107,475.00
-755.00
-0.70%
BRENT CRUDE 66.47 66.63
66.34
-0.27
-0.40%
RICHARDS BAY COAL MONTHLY 97.00 97.00
97.00
1.05
1.09%
ROTTERDAM COAL MONTHLY 107.65 107.65
105.85
1.25
1.17%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 64.81 65.02
64.67
-0.30
-0.46%
SUGAR #11 WORLD 16.19 16.74
16.14
-0.52
-3.11%

Chart of the Day


Latest News
July 01, 2025 at 09:56 AM GMT+05:00

PSX Opening Bell: Green and Growing


July 01, 2025 at 09:30 AM GMT+05:00

Asia markets mixed amid tariff uncertainty


July 01, 2025 at 06:00 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg