SECP has introduced new rules to enhance transparency in life insurance and family takaful product illustrations. The revised format aims to protect policyholders from misleading information and improve their understanding of policy benefits.
Under the new regulations, insurance companies must provide clearer disclosures about allocation charges and present key information in a simplified format with larger font sizes. The number of illustration scenarios has been reduced from three to two, and inflation-adjusted values will no longer be displayed.
SECP collaborated with industry stakeholders, including insurance companies, the Insurance Association of Pakistan, and the Pakistan Society of Actuaries, to develop the new rules. The revised regulations, outlined in S.R.O. 1088 (I)/2024, are now available on the SECP website.
The changes are expected to improve consumer protection and foster trust in the insurance industry.
