Islamabad(Business Reporter);SECP Simplifies Disclosure Requirements for Life Insurance and Takaful Products, The Securities and Exchange Commission of Pakistan (SECP) has introduced a simplified illustration format for life insurance and family takaful products to enhance transparency and facilitate informed decision-making for policyholders.
The new format aims to provide clear and concise information about the product’s features, benefits, and terms, enabling customers to make informed choices. The illustration format will be used by insurance and takaful companies to disclose key details about their products.
The SECP’s initiative is part of its efforts to promote transparency, fairness, and customer protection in the insurance and takaful industry. The simplified illustration format will be mandatory for all life insurance and family takaful products offered in Pakistan.
The problems that have impeded the growth of the distribution network and affected retail penetration are discussed in the third part of the paper. Further, it recommends a transformative framework to revamp the distribution model and improve its usability and accessibility for average investors. The proposed changes are designed to align with international best practices and ensure that pension fund participants receive the maximum value from their savings.
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SECP requests public feedback in order to introduce regulatory changes aimed at creating a more efficient, transparent, and equitable system that better meets the needs of investors. Interested stakeholders may send their comments and feedback at fmd.feedback@secp.gov.pk.
The consultation paper can be accessed at https://www.secp.gov.pk/document/mutual-fund-for-masses-consultation-paper/?wpdmdl=52402&refresh=66a74953a69711722239315
