The Securities and Exchange Commission of Pakistan (SECP) has taken a significant step toward modernizing the insurance sector by issuing the Directive for the Sale of Life Insurance Savings Products through Technology-Based Distribution Channels, 2025. This initiative aims to foster a more flexible and accessible environment for digital distribution, making it easier for consumers to invest in life insurance savings products.
Key Highlights of the SECP Directive 🚀
- Simplified Onboarding Process 📝: The directive introduces rationalized onboarding requirements to facilitate seamless digital distribution while ensuring enhanced value for policyholders.
- Consumer Protection Measures 🔒: Insurers must adhere to a low charge structure and invest in low-risk instruments to safeguard consumer interests.
- Mandatory Digital Availability 📱: At least one life insurance savings product must be available via an insurer’s website or mobile app and an independent platform within one year.
- Expanded Distribution Channels 🌍: The directive enables new tech-driven avenues for insurance sales, including digital banks, telecom operators, and web aggregators.
Impact on the Insurance Sector 📈
This initiative is expected to increase insurance penetration across Pakistan by making life insurance more accessible and user-friendly. By easing customer onboarding and ensuring affordability, SECP aims to boost consumer confidence in life insurance products with savings components.
Furthermore, this move is in line with SECP’s five-year strategic plan, reinforcing its commitment to digitizing insurance distribution and fostering innovation in the financial sector.
The Future of Life Insurance in Pakistan 🔮
With digital transformation shaping various industries, SECP’s directive sets the stage for a tech-driven evolution in Pakistan’s insurance sector. Consumers will now have greater convenience, transparency, and security when purchasing life insurance savings products online.
Final Thoughts 💡
As Pakistan embraces digital insurance solutions, this regulatory move by SECP paves the way for a more inclusive and tech-forward financial ecosystem. Whether you’re an insurer, a fintech company, or a consumer, this directive is a game-changer in making life insurance savings products easier to access and manage.
