SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
International Affairs, Communication & Coordination (IACC) Department
Securities and Exchange Commission of Pakistan
NICL Building, 63-Jinnah Avenue, Islamabad
UAN#: 111-11-7327
Direct #: 9214005,
PRESS RELEASE
FOR IMMEDIATE RELEASE
SECP revises maximum management expense limits
ISLAMABAD, March 22: The Securities and Exchange Commission of Pakistan while monitoring
the insurance sector is also endeavoring to remove bottlenecks that hamper its growth and is
attempting to bring it at par with international standards.
The SECP protects the interest of the policyholders and ensures that the companies have the ability to
pay claims to consumers, even when there is a slowdown in investment growth.
Vide a previous circular, the Commission put a ceiling on life insurers and family takaful operators
registered under the Insurance Ordinance 2000, in respect of management expense limits which
include operating expenses, business acquisition costs i.e. commission to agents etc., ensuring that
they are maintained at the optimum levels.
Recently, taking cognizance of the operational difficulties being faced by a few life insurance
companies, the SECP has reviewed and prescribed new maximum management expense limits for two
years, i.e., 2011 and 2012.
Whilst granting the relaxation, the SEC urged upon the life insurance and family takaful companies to
focus on various cost-cutting measures viz. distribution channels, type of sales force, adopting internal
controls on variable costs, etc.
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: 921-4005 or 921-4009 ext. 378
Fax: 920-6459
Cell: 0302-855-2254
email: shakil.chaudhary@secp.gov.pk
International Affairs, Communication & Coordination (IACC) Department
Securities and Exchange Commission of Pakistan
NICL Building, 63-Jinnah Avenue, Islamabad
UAN#: 111-11-7327
Direct #: 9214005,
PRESS RELEASE
FOR IMMEDIATE RELEASE
SECP revises maximum management expense limits
ISLAMABAD, March 22: The Securities and Exchange Commission of Pakistan while monitoring
the insurance sector is also endeavoring to remove bottlenecks that hamper its growth and is
attempting to bring it at par with international standards.
The SECP protects the interest of the policyholders and ensures that the companies have the ability to
pay claims to consumers, even when there is a slowdown in investment growth.
Vide a previous circular, the Commission put a ceiling on life insurers and family takaful operators
registered under the Insurance Ordinance 2000, in respect of management expense limits which
include operating expenses, business acquisition costs i.e. commission to agents etc., ensuring that
they are maintained at the optimum levels.
Recently, taking cognizance of the operational difficulties being faced by a few life insurance
companies, the SECP has reviewed and prescribed new maximum management expense limits for two
years, i.e., 2011 and 2012.
Whilst granting the relaxation, the SEC urged upon the life insurance and family takaful companies to
focus on various cost-cutting measures viz. distribution channels, type of sales force, adopting internal
controls on variable costs, etc.
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: 921-4005 or 921-4009 ext. 378
Fax: 920-6459
Cell: 0302-855-2254
email: shakil.chaudhary@secp.gov.pk
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