SECP Grants Registration To First Digital Insurer

The Securities and Exchange Commission of Pakistan (SECP) has registered and issued license to M/s Salaam Family Takaful Limited as the first ever digital family takaful operator

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Apr, 2024) The Securities and Exchange Commission of Pakistan (SECP) has registered and issued license to M/s Salaam Family Takaful Limited as the first ever digital family takaful operator.

The registration regime for digital-only insurers and dedicated micro-insurers was introduced through an amendment to the Insurance Rules, 2017, notified vide S.R.O 1513(I)/2022, aiming to promote digitalization and improve customer convenience through instant provision of services, said a press release issued here on Wednesday.

The licensing of digital insurers in Pakistan will improve competition in the insurance market by lowering entrance barriers and providing more access to new insurance products and services. Digital insurers are expected to significantly lower policyholder costs and promote the adoption of customer-cantered international best practices.

Digital insurers will offer digitized claims management, enhanced policyholder connectivity through portal-based communication, and tailored services to meet policyholders' specific needs.

With the premium from digital channels constituting less than 1% of total industry premium, the registration is also expected to have a favourable impact on the overall industry premium from digital channels, ultimately catalyzing insurance penetration of the country towards the upward trajectory.

The notification for grant of registration to M/s Salaam Family Takaful Limited has been issued pursuant to provisions of sub-section (1) of section 10 of the Insurance Ordinance 2000.