Pakistan’s first ever centralized repository of information for life insurance has been established in order to fulfill the government’s aim of facilitating business activities and improving consumer protection.
The repository will electronically include significant data of the living insurance policy, which will operate under the regulatory control of the Securities and Exchange Commission of Pakistan (SECP).
SECP Chairman Aamir Khan, in his address at an event held to mark the occasion, said the initiative would accelerate technological advancement in the insurance industry while ensuring facilitation and protection of policyholders. He voiced hope that it would facilitate effective settlement of insurance claims and cause a reduction in “mis-selling and policy churning”.
“We, at the SECP, are very mindful of our responsibilities as a progressive regulator that needs to help the industry to develop and grow, and simultaneously create linkages between its regulated sectors and the real economy,” he stated.
Khan highlighted that the centralised documentation of data in digitalised form was critical to achieving transparency, speed and cost-effectiveness. He told the audience that the SECP had already embarked on a transformational journey of digitalisation through its recently launched initiative – Leading Efficiency through Automated Prowess (LEAP).
LEAP will enable 100% end-to-end automation, complete integration with multiple government agencies for one-time registration, digitalisation and storage of financial statements of companies through the introduction of Extensible Business Reporting Language (XBRL).
The centralised repository will also enable electronic storage of life insurance and family takaful policies and serve as a central point for critical policyholders-related information.
It will aid the underwriting function of the insurers in determining the appropriateness of an insurance policy, the level of insurance coverage and affordability of the insurance policy for the customer.