Regulatory Alerts2023-10-01
Added · Updated
Life Insurance and Family Takaful
VIS Credit Rating Company Ltd. has updated its rating methodology to integrate environmental, social, and governance (ESG) criteria for assessing life insurance and Family Takaful firms in Pakistan. The framework evaluates financial and qualitative drivers, including capitalization, liquidity, underwriting policies, reinsurance adequacy, and Shariah compliance, to determine each company’s claim-paying ability and competitive positioning. By analyzing business mix, fund structures like the Participants’ Takaful Fund, and climate risk exposure, the updated criteria provide a standardized basis for assigning credit ratings that reflect long-term financial strength and operational resilience.