ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has increased the minimum required amount of paid-up capital for insurance companies.
The SECP has issued SRO 1588(I)/2024 to introduce draft amendments to the Insurance Rules, 2017.
According to the details, the amount in the notification given shall be the minimum required amount of paid-up capital for an existing life insurer and non-life insurer registered under the Ordinance to carry on insurance business.
Insurance companies: SECP proposes increase in minimum paid-up capital requirement
Under the enhanced requirements, the minimum paid up capital requirement for life insurer would be Rs 1,000 million for year 2025 and minimum paid up capital requirement for non-life insurer would be Rs 800 million for year 2025.
Prior to December 31, 2025, minimum paid up capital requirement for life insurer is Rs 700 million whereas minimum paid up capital requirement for non-life insurer is Rs 500 million.
The minimum paid up capital requirement for an insurer who, after the insertion of this rule, desires to register itself, shall be Rs 3,000 million for life insurance business and Rs 2,000 million for non-life insurance business.
The SECP has also mentioned amount given which shall be the minimum required amount of paid-up capital for a micro-insurer and digital-only insurer, registered under the Ordinance to carry on insurance business.
The minimum paid up capital requirement for life micro-insurer would be Rs 150 million; non-life micro-insurer Rs 80 million; life digital-only insurer Rs 250 million and minimum paid up capital requirement for non-life digital-only insurer would be Rs 100 million.
The life digital-only insurer shall have minimum paid up capital in accordance with the requirement of sub-rule (2) of rule 11; Provided that where any life digital-only insurer is underwriting life insurance saving products, before the insertion of this clause, the minimum paid up capital shall be in accordance with the requirement of sub-rule (1) of rule 11, SECP added.
Copyright Business Recorder, 2024