ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified Corporate Insurance Agents Regulations, 2020 in a bid to strengthen the regulatory framework for distribution of insurance through corporate agents.
The regulations also include code of conduct for corporate insurance agents of insurance companies to clearly define their role and responsibilities while dealing with the policyholders as well as measures to promote technology driven modes of corporate insurance agents.
To protect policyholders’ rights, the Regulations require corporate insurance agents including banks to ensure provision of clear and detailed disclosures to potential policyholders/customers. The after-sales callback confirmation process has been improved and a basic script of callback confirmation has been included in regulations.
The regulations also introduce an automatic commission claw-back provision whereas product structure and bank’s remuneration have been further aligned to policyholder’s interest through rationalisation of commission rates and introduction of minimum premium allocation rates.
Other areas addressed in the regulations include, promotion of digitalization, encouraging suitable product mix, provision of bilingual policy documents to policyholders, increased communication with the policyholders through SMS and emails, enhanced disclosure requirements including showing audio-visual clip of insurance product to policyholders, enhanced training requirements etc.
The regulations are aimed at curtailing the issue of misspelling and ensuring provision of maximum and clear information regarding the company’s term and conditions of an insurance policy.