ISLAMABAD
\nThe Securities and Exchange Commission of Pakistan (SECP) has issued the draft Actuarial Valuation Rules, 2025, for public consultation. The proposed framework applies to both Life and Non-Life Insurance and Takaful businesses, aligning with the objectives of the SECP\u2019s five-year strategic plan, \u201cJourney to an Insured Pakistan\u201d.
\nThe draft Rules establish a framework for valuation of insurance contract assets and liabilities. They were developed in line with the International Association of Insurance Supervisors\u2019 (IAIS) Core Principles and the latest global actuarial practices. Prepared in consultation with the Pakistan Society of Actuaries (PSoA), the rules also incorporate the adoption of risk-based capital and supervisory regimes.
\nThe aim is to standardise and align actuarial valuation practices with international markets, supporting the SECP\u2019s objectives of digitisation, transparency, and innovation.
\nHighlighting the commission\u2019s focus on insurance sector, the SECP chairperson stated, \u201cDeveloping a vibrant and sustainable insurance sector is a key focus of our five-year strategic plan.
\nWe are guided by a commitment to core principles that ensure a level playing field: championing competition and market openness, removing barriers such as legal monopolies, privatisation and ensuring our regulatory framework meets the highest international standards.\u201d
\nThese rules introduce and expand upon contemporary and market-consistent reserving practices. Key provisions include gross premium valuation for long-term insurance and takaful businesses, updated methodologies for premium and claims reserving for short-term insurance and takaful businesses, the adoption of principle-based and consistent actuarial assumptions, improved data quality practices, and enhanced standardization of quality submissions.
\nThe adoption of updated actuarial valuation practices will promote the long-term financial viability and sustainability of the industry.
\nThis will help meet and safeguard policyholders\u2019 interests and expectations, enhance shareholders\u2019 understanding and management of insurance businesses, and improve the quality of reviews for statutory reporting.
\nThe draft rules are available on the SECP website for public information and feedback. Comments and suggestions on the draft rules may be submitted to the SECP within 30 days of their publication. The SECP will also schedule consultation sessions to get input from industry stakeholders.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The Securities and Exchange Commission of Pakistan (SECP) has issued the draft Actuarial Valuation Rules, 2025, for public consultation. The proposed framework applies to both Life and Non-Life Insurance and Takaful businesses, aligning with the objectives of the SECP\u2019s five-year strategic plan, \u201cJourney to an Insured Pakistan\u201d. The draft Rules establish a framework for […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-502774","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n