Islamabad – The Securities and Exchange Commission of Pakistan (SECP) has released the draft Actuarial Valuation Rules, 2025, for public consultation. The rules are designed to apply to both Life and Non-Life Insurance and Takaful businesses, in line with the SECP’s five-year strategic plan, “Journey to an Insured Pakistan.”
These draft Rules establish a framework for the valuation of insurance contract assets and liabilities, developed in accordance with the International Association of Insurance Supervisors’ (IAIS) Core Principles and global actuarial practices. The framework also incorporates risk-based capital and supervisory regimes, ensuring actuarial valuation practices are standardized and aligned with international markets.
The SECP Chairperson emphasized that a vibrant and sustainable insurance sector is a key objective of the Commission’s strategic plan. “We are committed to ensuring competition, market openness, and the adoption of international standards in our regulatory framework,” the Chairperson added.
Key provisions of the proposed rules include gross premium valuation for long-term insurance and takaful businesses, updated reserving methodologies for short-term insurance, adoption of consistent actuarial assumptions, improved data practices, and enhanced submission standards. These measures aim to promote the long-term sustainability of the insurance sector, protect policyholders’ interests, and improve statutory reporting reviews.
The draft Rules are available on the SECP website for public review and feedback. The SECP is also inviting comments and suggestions within 30 days and will host consultation sessions with industry stakeholders.
