ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday introduced a registration regime for digital-only insurers and dedicated micro insurers in a bid to promote digitalization and improve customer convenience through instant provision of services.
In this regard, amendments to the Insurance Rules, 2017 have been notified vide SRO 1513(I)/2022, said a press release.
The new framework is aimed at encouraging innovation, expanding product range, and promoting financial inclusion. The registration requirements have been designed to reduce barriers to entry, in terms of minimum paid up capital and solvency requirements.
The minimum capital requirements have been set at Rs100 million for non-life digital-only business and Rs250 million for life digital-only business, whereas for non-life and life micro insurers, the capital requirements have been set at Rs80 million and Rs150 million, respectively.
The framework requires the digital-only insurer to develop digital claim lodging and payment process since inception of operations, whilst demonstrating through implementation plan towards complete transition to digitalize claims processing comprising of claim intimation, claims assessment and payment.
It may be noted that the new framework does not prohibit existing insurance companies to underwrite microinsurance products or to distribute insurance through digital modes, under their existing setup. S.R.O 1513(I)/2022 covering the amendments to the Insurance Rules, 2017 is placed on the official website of the SECP and can be accessed at the commission’s website.