April 13, 2020: Amid the outbreak of COVID-19 (Coronavirus) in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) realizing the difficulties faced by insurance brokers, insurance surveyors, and authorized surveying officers (ASOs) in the renewal of their licenses, has relaxed the requirements in the renewal of licenses.
A Circular in this regard has been issued here on Monday.
To facilitate the insurance industry during an ongoing pandemic, SECP has introduced a relaxation period of two months for starting from March 15, 2020 to May 15, 2020. Insurance brokers/insurance surveyors/ ASOs whose licenses have expired or may expire during this period shall continue to carry on their business without renewal of its current license.
However, the respective insurance companies shall have to submit their license renewal applications prior to May 15, 2020. Upon receipt of the applications, licenses shall be renewed effective from the date of the expiry of the previous licenses.
Through the aforesaid Circular, SECP has also given an option to insurance brokers to send their applications to the Commission via email until the expiry of the lockdown.
All insurance companies/ general takaful operators shall continue to do business with insurance brokers/insurance surveyors/ASOs considering the grace period of two (2) months for any license expired after March 15, 2020.
The relaxation is to facilitate the insurance industry in ensuring compliance with regulatory requirements related to the renewal of a license under the Insurance Ordinance, 2000.