KARACHI – The Securities and Exchange Commission of Pakistan (SECP), while monitoring the insurance sector, is also endeavouring to remove any bottlenecks that hamper growth and is attempting to bring it at par with international standards. The SECP has stated that it protects the interests of policyholders and ensures that companies have the ability to pay claims to consumers, even when there is a slowdown in investment growth.
Through the issuance of an earlier circular, the commission put a ceiling on life insurers and family takaful operators registered under the Insurance Ordinance 2000, in respect of management expense limits which include operating expenses, business acquisition costs for example, commission to agents and other activities while ensuring that they are maintained at the optimum levels.
SECP revises maximum expense limits
