SRO 1916(I) 2025 Draft Notification – Insurance Accounting Regulations 2017

PART II Statutory Notification (S.R.O) GOVERNMENT OF PAKISTAN SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Islamabad, the 6 th October, 2025 NOTIFICATION S.R.O. 1916(I)/2025.- In exercise of powers conferred under sub-section (3) of section 167 of the Insurance Ordinance, 2000 (XXXIX of 2000), read with sub-section (1) of section 46 thereof, and Section 40 of the SECP Act 1997 (XLII of 1997), the Securities and Exchange Commission of Pakistan is pleased to publish the following amendments to the Insurance Accounting Regulations, 2017 for information of all persons likely to be affected thereby and notice is hereby given that objections or suggestions, if any, received within thirty days from the date of its publication shall be taken into consideration by the Commission, namely:- DRAFT AMENDMENTS These amendments will come into force on the date when IFRS 17 becomes effective for life and non￾life insurers. In the aforesaid Regulations.-

1. In Regulation 3, (i) For sub-regulation (1), the following shall be substituted, “(1) These Regulations will be applicable to regulatory returns only, except as otherwise provided in sub-regulation (3) and (4) below.”; (ii) For sub-regulation (3), the following shall be substituted, “(3) Regulation 7 and Regulation 22 relating to segment reporting and Regulation 8 and Regulation 23 relating to audit report will be applicable to published financial statements as well as regulatory returns of the life and non￾life insurers.”;

(iii) After sub-regulation (3) amended as aforesaid, the following new sub￾regulation (4) shall be inserted, “(4) Regulation 6, Regulation 11 and Regulation 11A shall be applicable mutatis mutandis to the Published Financial Statements.”; 2. In Regulation 13, for sub-regulation (2), the following shall be substituted, “(2) A liability for outstanding claims shall be recognized in respect of all claims incurred till the balance sheet date. The outstanding claims will be measured in accordance with the actuarial valuation requirements as notified by the commission from time to time.”; 3. In Regulation 22, for sub-regulation (1), the following shall be substituted, “(1) For the purposes of aggregation of insurance contracts as per IFRS 17 and other applicable standards, the classes of business may be aggregated into following major classes of business, for which, information needs to be submitted as required in the Annexure II, including the segmental information: Provided that the class of business which comprises 10% or more of the gross written premium of an insurer, shall not be aggregated into major classes of business and the segmental information, disclosure 100 and disclosure 101 will be prepared separately for such class of business. Segments of insurance business Major classes of business for reporting in published financial statements Fire and property damage including engineering Fire & property damage Marine, aviation & transport excluding motor insurance Marine aviation & transport Motor insurance Motor Motor third party compulsory Accident & health Accident & health Liability others Workers compensation Credit & suretyship Agriculture (including crop insurance) Miscellaneous Proportional treaty inward business Non-proportional treaty inward business

4. In Regulation 24, (i) In sub-regulation (4), the word “either” shall be omitted; (ii) In clause (i), for the word “or”, the phrase “and in accordance with the actuarial valuation requirements as notified by the commission from time to time.” Shall be substituted; (iii) Clause (ii) shall be omitted; (iv) Clause (iii) shall be omitted;
5. In Regulation 25, (i) For sub-regulation (1), the following shall be substituted, “(1) a liability for outstanding claims shall be recognized in respect of all claims incurred to balance date, and must be measured in accordance with the actuarial valuation requirements as notified by the commission from time to time.”; (ii) For sub-regulation (4), the following shall be substituted, “(4) the claims incurred but not reported shall be recognized in accordance with the actuarial valuation requirements as notified by the commission from time to time.”;
6. In Regulation 30, (i) For sub-regulation (1), the following shall be substituted, “(1) The provision for premium deficiency will be determined in accordance with the actuarial valuation requirements as notified by the commission from time to time.”; (ii) Sub-regulation (2) shall be omitted. [No. SY/SECP/8/13]