The existing insurance regulatory framework describes the broad type of product-related information to be submitted at the time of registration of a life insurer or at the time of introduction of new products or amendments to existing products, said an SECP statement here Monday.
The SCEP said many new developments had taken place in the insurance sector after the promulgation of the 2000 Insurance Ordinance such as increasing trend of unit-linked products, emergence of bancassurance and other alternative distribution channels and the entry of family takaful operators. These developments have necessitated more guidance from the regulator to streamline the product submission process, it added.
The commission said in addition to standardizing the product submission process, the new regulatory directive was also aimed at ensuring that products sold to the insurance customers were consistent with the product features and parameters submitted to the regulator.
For this purpose, the directive requires the life insurer to submit a post-registration implementation certificate to the regulator before commencement of sales of a registered product, it said and added that such a certificate was required to be signed by the appointed actuary of a life insurer. The SECP believed that this directive would enhance the efficiency and effectiveness of product submission process. -Brecorder