Securities and Exchange Commission of Pakistan (SECP) has introduced new regulations governing the sale of life insurance savings products through digital channels. The directive, titled “Directive for Sale of Life Insurance Savings Products through Technology-Based Distribution Channels, 2024,” will come into effect three months after its publication in the official Gazette.
Under the new guidelines, life insurers and family takaful operators can distribute savings products in two categories: Category-A and Category-B. Each category has specific requirements and features that must be adhered to.
The SECP has outlined the minimum requirements for both categories, ensuring that consumers are adequately protected and informed. While the directive provides exemptions for certain matters, all other applicable regulatory requirements remain in place.
To comply with the new regulations, life insurers must offer at least one life insurance savings product under each category through their own website or mobile application. Additionally, they must list their savings products on an independent online platform that provides aggregation and comparison services.
The SECP has also emphasized the importance of technological capability for life insurers. They must develop adequate systems for customer engagement, enrollment, distribution, administration, servicing, and claim processing. This includes having a backup system for business continuity and ensuring the confidentiality of policyholder data.
