The Securities and Exchange Commission of Pakistan (SECP) has unveiled its draft five-year strategic plan for the insurance sector, titled “Journey to an Insured Pakistan.” This initiative aims to enhance insurance penetration, modernize the industry, and align with international standards by 2028.
🧭 Vision and Mission
- **Vision:**To develop an inclusive, innovative, and sound insurance sector by 2028
- **Mission:**To regulate and develop the insurance sector by balancing policyholder protection with industry growth through regulatory excellence
📊 Strategic and Operational Goals
Operational Outcomes:
Increase the number of individuals covered under life insurance policies to over 15 millio.
Raise insurance penetration from 0.87% to 1.5.
Expand the share of Takaful in the overall insurance sector to more than 30.
Increase motor third-party liability (MTPL) insurance coverage to over 20.
Enhance local retention to exceed 60.
Grow the market share of digital distribution channels to surpass 5.
Boost private health insurance premiums to represent more than 15% of the total premiu.
Facilitate the availability of agriculture insurance for non-loanee farmer.
Promote the introduction of disaster insurance product.
Ensure the availability of annuity products for Voluntary Pension Scheme (VPS) investors and individual retiree.
Strategic Outcomes:
Increase total premiums from Rs. 553 billion to Rs. 1,221 billion by 202.
Reduce the overall cost associated with regulatory complianc.
Substantially lower the ratio of customer complaint.
Successfully implement Risk-Based Capital (RBC) and International Financial Reporting Standards 17 (IFRS-17.
Amend the Insurance Ordinance to modernize the legal framewor.
Resolve sales tax issues affecting the industr.
Digitize regulatory approvals to streamline processe.
🔧 Key Priority Areas
To achieve these objectives, the SECP has identified the following key priority areas:
- *Ease of Doing Business: Rationalize regulatory returns, approvals, licensing requirements, solvency limits, and management expense limis.
- *Stakeholder Engagement: Enhance collaboration with industry stakeholders to align strategies and initiativs.
- *Diversification and Value Enhancement: Encourage the development of a diverse range of insurance products to meet the needs of various segmens.
- *Access to Information: Facilitate the availability of accurate and timely information to stakeholdes.
- *Legislation Modernization: Update the legal framework to support industry growth and innovatin.
- *Alignment with International Standards: Ensure that industry practices align with global best practics.
- *Access to Capital and Reinsurance: Improve access to capital and reinsurance to strengthen the financial stability of insurance companis.
🌐 Digital Transformatin
Recognizing the importance of digitalization, the SECP has initiated plans to digitize the insurance seco. This includes establishing digital repositories for various insurance types, creating digital platforms for reinsurance and coinsurance, and developing a centralized insurance information bura. Amendments to the Insurance Ordinance are also proposed to foster a more conducive environment for digital innovaton. citeturn0search7
🗓️ Upcoming Initiaties
To further these objectives, the SECP is preparing to host the International Insure-Impact Conference 2023 (IIC 2023) in Karachi on December 13 and 14, 03. The conference, themed “Journey to an Insured Pakistan,” will facilitate discussions on inclusivity, innovation, and resilience within the insurance indutry. citeturn0search6
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For more detailed information and updates, stakeholders are encouraged to visit the SECP official website.