SECP streamlines insurance products disclosure

Author: APP

Securities and Exchange Commission of Pakistan (SECP) on Tuesday issued a revised illustration format to improve the readability, standardize insurers’ illustrative values and safeguard prospective policyholders from any deception.

“In this regard, S.R.O. 1088 (I)/2024 has been issued and is applicable on life insurance and family takaful products with savings components,” a news release said. Life insurance and family takaful operators use product illustrations to highlight the benefits of long-term financial protection and savings vehicles, typically lasting over 5 to 20 years. Hence, the product illustrations are an integral part of the sales process of life insurance and family takaful policies.

The revised requirements aim to enhance transparency in product illustrations through improved disclosures and making them simple for the understanding of potential policyholders by explicit disclosure of allocation charges, clearly mentioning key disclosures with simplified format and enhanced font size.

Moreover, Companies have requested to reduce illustration scenarios from 3 to 2 and remove inflation-adjusted values, displaying only actual amounts allocated to policyholder accounts.

Share
Leave a Comment

Recent Posts

  • Editorial

End of Era

Suspension of the U.S. Global Undergraduate Exchange Program (Global UGRAD) is akin to losing a…

2 hours ago
  • Editorial

Reclaiming Pakistan’s Sporting Soul

There was a time when Pakistan's name echoed across global sports arenas. The hockey team's…

2 hours ago
  • Op-Ed

The Cobras and Canberra

Pakistan Air Force (PAF)'s Squadron 15, known as the 'Cobras,' holds a number of notable…

2 hours ago
  • Op-Ed

Politics of Systemic De-Politicisation

A society robbed of political agency does not collapse overnight; it erodes under the weight…

2 hours ago
  • Op-Ed

Hindutvising Muslim Waqf in India

The Waqf (Amendment) Bill 2024, to amend the 1995 Waqf Act (1995 Act), recently passed…

2 hours ago
  • Op-Ed

Is Pakistan’s Judiciary “Blind”? – XI

Justice Athar Minallah's remarks about Nawaz Sharifs' survival until the court's next hearing were not…

2 hours ago