CDC all set to launch an e-Repository for Insurance policies with the collaboration of Life Insurance Companies
Under the regulatory impetus of the Securities and Exchange Commission of Pakistan (SECP), the Life Insurance industry in Pakistan is set to enter a new phase of digitalization and centralization of policyholder information, i.e. establishment of Centralized Insurance Repository, through the technological support of the Central Depository Company of Pakistan (CDC). To kick-start the initiative, a Memorandum of Understanding (MoU) has been signed between the Central Depository Company of Pakistan (CDC) and Life Insurance companies in a ceremony held at the CDC House, Karachi on July 31, 2019. The establishment of e-Repository will prove as a landmark achievement for the insurance industry and will pave the way for exploring further avenues of digital transformation which has gained traction with the financial sector.
The e-Repository is envisioned to enable the centralized storage of life insurance and family takaful policies in electronic form and serve as the central point for critical policyholder related information with regards to insurance. The e-Repository is expected not only to bring transparency, speed, and convenience and cost efficiency, but also to complement the objectives of Ease of Doing Business (EODB) and enhanced consumer protection in a multi-pronged manner. The expected benefits of the proposed Repository system include receiving automated claim intimations by multiple insurers, notifying of non-financial endorsements, curbing the policy churning malpractice, and complementing the financial underwriting process.
The e-Repository may also serve as Regulatory Technology (RegTech) which can help insurance companies in improving compliance with the applicable AML regime. CEO CDC, Mr. Badiuddin Akber, while speaking on the occasion, presented how CDC with its state of the art technological platform and vast expertise in projects of similar nature is best-suited to facilitate the development and operation of the e-Repository.
The event was graced by many prominent senior leaders and veterans, including the Chairman State Life Insurance of Pakistan Mr. Farrukh Hamidi, Chairman SECP Mr. Farrukh Sabzwari and Chairman CDC Mr. Moin Fudda, who showed their appreciation and support of this initiative.