The Securities and Exchange Commission of Pakistan (SECP) has proposed to the National Financial Inclusion Strategy (NFIS) Steering Committee to introduce insurance education in the academic curriculum. Sources told Business Recorder here on Monday that the proposal is expected to be discussed in the 5th Meeting of National Financial Inclusion Strategy (NFIS) Steering Committee to be held at the State Bank of Pakistan (SBP) Karachi on Tuesday (today).
While reviewing insurance proposals in the previous NFIS Steering Committee meeting, it was decided that actions which will promote financial inclusion will be implemented through the NFIS governance structure and rest of the actions will be taken up by the SECP with relevant authorities/ stakeholders. Accordingly, the SECP has now presented proposals/recommendations on insurance.
The NFIS TCI had formulated the key contents/ outline of the insurance curriculum which may be included in academic syllabus from primary to graduate level. A letter was sent to the Pakistan Insurance Institute (PII) on April 7, 2017 asking it to take lead in management task of development of insurance curriculum, after which the PII had requested for funding for this task. The preliminary funding proposal in this regard has been developed and sent to the NFIS Technical Committee on Financial Literacy and Consumer Protection, sources added.
The SECP has also submitted proposal for promotion of Micro-Insurance and Digitally Distributed Insurance. In this regard, rationalization of NADRA verification cost for micro-insurance policies has been proposed. The second proposal is the rationalization of Enhanced Due Diligence (EDD) requirement for digitally distributed insurance.
In respect of rationalization of Enhanced Due Diligence (EDD) requirement for digitally distributed insurance, the NFIS TCI has drafted the Draft Directive for Corporate Insurance Agents and Technology based Distribution Channels on which, consultation has been done with the Insurance Association of Pakistan (IAP). The draft revised after consultation has been sent to the IAP for its review. The IAP had provided its comments on September 8, 2017 which are under review of SECP.