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

  • Pakistan

Tarar welcomes May 9 convictions, seeks military trial of mastermind

Federal Minister for Information, Broadcasting, National Heritage, and Culture Attaullah Tarar on Thursday, welcoming the…

6 hours ago
  • Pakistan

Justice Ali Baqar Najafi takes oath as acting CJ

Justice Ali Baqar Najafi on Thursday took oath as the Acting Chief Justice of the…

6 hours ago
  • Pakistan

‘Women’s participation in digital spaces, remains low’

Women's participation in the economy, especially in the use of technology and digital spaces, remains…

6 hours ago
  • Pakistan

CJCSC meets Kuwait’s crown prince, discusses defence cooperation

Chairman Joint Chiefs of Staff Committee (CJCSC) General Sahir Shamshad Mirza called on Crown Prince…

6 hours ago
  • Pakistan

Naqvi inaugurates passport and immigration HQs

Federal Minister for Interior, Mohsin Naqvi on Thursday inaugurated the newly built state-of-the-art Passport and…

6 hours ago
  • Pakistan

Karachi mayor announces restoration of Shaheed BB Football Ground

Mayor Karachi Barrister Murtaza Wahab Thursday announced to restore Shaheed Benazir Bhutto Football Ground and…

6 hours ago