Rules for insurers’ CEOs amended

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has amended rules for approval of directors and chief executive officers (CEOs) of insurance companies, facilitating the industry through removal of redundancies and reducing documentary submission requirements, it said on Friday.

The regulator notified amendments to the Insurance Companies (Sound and Prudent Management) Regulations, 2012.

SECP said requirements of submission of wealth statement, photograph of applicant, affidavit as per Annexure C to the Regulations, and HEC verified educational documents of CEO had been removed through amendments.

The regulator has also merged undertakings/affidavits required to be submitted under the Regulations into a single document.

For streamlining application submission and approval process, the timelines within which application and/or information is to be submitted to the SECP by insurance companies has also been specified, it says.

Furthermore, to ensure that the members of board of directors of an insurance company are well conversant with insurance business, the amendments require that that at least one director of a fresh applicant (insurance company), excluding the chief executive, should have at least five years’ experience of working at senior level positions in the insurance industry or the financial services industry.