CDC signs Agreement for Centralized Insurance Repository with Life Insurance and Family Takaful Companies
On February 24, 2020, Central Depository Company (CDC) signed an Agreement for Centralized Insurance Repository (CIR) with Life Insurance and Family Takaful Companies of Pakistan. This initiative was undertaken by CDC under the regulatory impetus of Securities and Exchange Commission of Pakistan (SECP) and in line with Government of Pakistan’s objectives to provide Ease of Doing Business through digitization.
The Centralized Insurance Repository will enable electronic storage of life insurance and family takaful policies and serve as central point for critical policyholder related information. It will aid the underwriting function of the insurers to determine the appropriateness of an insurance policy, the level of insurance coverage and affordability of the insurance policy for the customer which will ultimately result in need-based selling and substantial reduction in mis-selling. It will also yield benefits such as receiving automatic claim intimation by multiple insurers, notifying of non-financial endorsements, curbing the policy churning malpractice, and complementing the financial underwriting process.
Mr. Aamir Khan, Chairman SECP graced the occasion as the Chief Guest while Mr. Shaukat Hussain, Commissioner Insurance Division and Mr. Nayyar Hussain, Director Insurance Division were also in attendance. Mr. Badiuddin Akber, CEO-CDC, members of the CDC Board of Directors, Senior Management of CDC and representatives of life insurers, non-life insurers, and relevant stakeholders attended the signing ceremony.
Prominent veterans of the Insurance Industry shared their views regarding the launch of this prestigious project including and Mr. Hussain Hijri, Chairman of the Insurance Association of Pakistan, Mr. Izkar Khan, Executive Director, State Life Insurance Corporation, and Mr. Javed Ahmed, Chief Executive Officer, Jubilee Life Insurance who showed their appreciation and support of this initiative.
During his welcome address, Mr. Badiuddin Akber, CEO-CDC said “The biggest achievement of this repository will be the data consolidation of all the policies issued in Pakistan. We are living in the information era today and we can make informed decisions to shape our future through the use of information. This information will enable us in determining our future roadmap for the Insurance Industry and assist us in planning and devising new concepts, products and services.”
Chairman SECP, Mr. Aamir Khan in his keynote address said the initiative would augment technological advancement in the insurance industry while ensuring facilitation and protection of policyholders. He hoped that it would facilitate effective settlement of insurance claims and underlined that the centralized documentation of data in digitalized form was critical to achieving transparency, speed and cost effectiveness.