SECP committed for developing Islamic financial sector

22 Nov, 2014

ISLAMABAD: In order to develop a robust takaful sector, the Securities and Exchange Commission of Pakistan (SECP) has allowed M/s SPI Insurance Company Limited, formerly known as Saudi Pak Insurance Company Limited, to start window takaful operations.

The initiative would help meet the risk mitigation needs of the masses and develop the Islamic financial sector, said SECP press statement issued here.

Previously, two conventional insurance companies were allowed to transact takaful business through window operations.

Now the takaful sector comprises of eight takaful operators, out of which two are full-fledged family takaful operators, three full-fledged general takaful operators and three general window takaful operators.

Currently, the SECP is processing one more application to start window takaful operations.

The takaful sector in Pakistan has yet to go a long way in fulfilling the risk mitigation needs of the masses.

This would lead to an increase in insurance penetration and insurance density of Pakistan, which still remains to be among the lowest in the region.

Copyright APP (Associated Press of Pakistan), 2014

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