SECP to facilitate MoU signing between CDC Pakistan and Life Insurance Companies for Launch of e- Repository for Insurance
KARACHI: 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 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 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 automatic claim intimation 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.
The Chairman SECP, Mr. Farrukh Sabzwari, also graced the event to express his commitment & support towards the growth and development of the insurance industry in-line with the global trends of digitalization and centralization of data and emphasized that digitalization is a game changer for financial sector. Commenting on the occasion, CEO CDC, Mr. Badiuddin Akber, said that CDC has a state of the art technological platform and vast expertise in projects of similar nature to facilitate the development and operation of the e-Repository. Also commenting on the occasion, SECP Director of Insurance Division & Policy Development, Syed Nayyar Hussain, said that SECP has been persistently working on various avenues of Market Development and reforms for the development of the Insurance Industry of Pakistan.
The event was graced by many prominent senior leaders and veterans of the Insurance Industry, including the Chairman of State Life Insurance of Pakistan, Mr. Farrukh Hamidi, who showed their appreciation and support of this initiative.