Islamabad, 25 February 2020 – Mudasser Chudhary:
Technological advancement in the insurance industry while ensuring facilitation and protection of policyholders. This move will bring about increased efficiency, transparency and cost reduction in the insurance industry. In addition, one of the biggest advantages of this repository will be the consolidation of data of all the policies issued in Pakistan helping to create an ecosystem for automation of death claims with subsequent integration with NADRA’s death register.
SECP’s approach has always been to proactively engage with the industry and introduce required changes/modifications in close coordination, imbibed with a spirit of shared and collective resolve and ambition.
The SECP has also embarked upon a transformational journey of digitalization through its recently launched initiative – ‘Leading Efficiency through Automated Prowess (LEAP). This will enable 100% end-to-end automation, complete integration with multiple government agencies for one-time registration, and digitalization and storage of financial statements of companies through introduction of Extensible Business Reporting Language (XBRL).
Figures of insurance penetration and growth are not encouraging, especially if SECP comparison with regional markets. Technology has provided SECP with an opportunity to achieve the desired results, and via digital platforms.The centralized documentation of data in digitalized form is critical to achieving transparency, speed and cost effectiveness.
Complaints regarding delay in claim settlements, instances of policy churning, mis-selling, problems in compliance with AML regime, etc.The SECP has adopted a zero-tolerance policy towards such issues, and has accordingly strengthened its oversight and enforcement.Centralized Insurance Repository is bound to address some of these issues. A NADRA link with national death register can trigger automatic intimation of death and initiation of claims.
A self-regulatory organization can effectively play the role of frontline regulator, supporting innovation through research and data analytics on one hand, and building the capacity of the industry stakeholders as well as addressing grievances on the other. The areas of financial underwriting and non-financial endorsements can now be explored further with the help of this repository.
These policies will reflective of three “V’s” philosophy of Centralized Insurance Repository (CIR): Vibrance, Velocity and Virtue.