ISLAMABAD: Zafar-ul-Haq Hijazi, the SECP chairman, in a meeting gave the Finance Minister, Ishaq Dar, an overview of the insurance industry and briefed him on the amendments required to improve the insurance regulatory framework.

The amendments are expected to improve the financial soundness of insurance companies and help develop robust and financially stable insurance sector in which the interests of policyholders are fully protected. The proposed framework aims at providing conducive regulatory environment to encourage market development, strengthen the regulatory framework to ensure alignment with the Insurance Core Principles (ICP) of the International Association of Insurance Supervisors (IAIS).

Considering the importance of the proposed improvements, Dar advised the replacement of the Insurance Ordinance, 2000, with a new law. “This will improve the international image of Pakistan’s insurance industry.” He further advised the SECP to start a nationwide consultation with stakeholders in this regard. Hijazi said that the SECP would hold stakeholders’ consultation in October 2016.

The meeting was informed that the updated version of Draft Companies Bill, 2016, had been submitted to the Ministry of Finance after extensive consultations. The Finance Minister directed the relevant officers that the proposed law may be processed as per the described procedure.—PR