Regulatory Alerts2022-07-05
Added · Updated
Insurance Companies (Sound and Prudent Management) Regulations 2012 (Updated 05.07.2022)
The Securities and Exchange Commission of Pakistan mandates that insurers obtain prior approval for appointing chief executives, principal officers, and directors who meet specific fit and proper criteria, including integrity, financial soundness, competence, and absence of conflicts of interest. Insurers must submit applications for such appointments within seven to ten days of election or appointment, and must immediately report any removal or resignation of these officers. The regulations require key officers and directors to report any changes affecting their fitness and propriety to the insurer within three business days, with the insurer subsequently reporting to the Commission within seven business days. Additionally, new fit and proper criteria include checks on overdue payments in Credit Information Bureau reports, active taxpayer status, and specific educational and experience qualifications for chief executives and directors.