SECP holds roundtable on group health insurance

The Securities and Exchange Commission of Pakistan (SECP) held a roundtable on group health insurance to facilitate the development of an information-sharing mechanism among insurance companies engaged in health insurance.

The roundtable was held at the SECP head office, while the participants from Karachi joined in through video-link. More than 20 participants from the life and non-life insurance companies, which are underwriting the business of group health insurance and representatives from the Central Depository Company (CDC) attended the roundtable and compared notes on information sharing regarding health insurance.

The SECP explained the rationale behind the idea of information sharing in respect of health insurance, stating that industry-wide sharing of information will enable insurers to benefit from the claims experience of health risks and will help insurers in underwriting and pricing of risks leading to improvement in top and bottom lines of the insurers. The CDC representative gave a presentation on the robustness of architecture of the proposed information sharing solution and assured the roundtable participants regarding the security and confidentiality of the shared information.

The Insurance Industry Reforms Committee (IIRC) in its 2014 report also recommended developing technology infrastructure in the insurance sector, including the area of health insurance. The idea is the extension of centralised information sharing solution for life insurance industry (CISSII) developed in 2014, which facilitates information sharing in life insurance sector in certain areas such as early death claims, postponed or declined risks, agents and group life claims experience. The proposed information sharing regarding health insurance will be facilitated by the addition of a register in the CISSII regarding the health insurance business.

The participants lauded the SECP’s initiative on building technology infrastructure in the insurance industry, which will eventually improve decision-making in underwriting and pricing of risks. They also provided their input with respect to information proposed to be shared through the information sharing solution. The roundtable concluded with the formation of a technical working group comprising representatives of life and non-life insurance companies, nominated by the roundtable participants, which will finalise the scope document for health register proposed to be added in the existing information sharing solution for the life insurance industry.