The Securities and Exchange Commission of Pakistan (SECP) has released the draft Actuarial Valuation Rules, 2025 for public feedback, marking a key step to strengthen Pakistan’s insurance sector. The rules apply to Life, Non-Life, and Takaful businesses, supporting SECP’s strategic initiative, “Journey to an Insured Pakistan.”
The insurance sector in Pakistan has faced challenges in standardizing actuarial practices and aligning with global norms. The new draft rules aim to address these issues by introducing contemporary valuation methods, risk-based capital approaches, and standardized actuarial assumptions, while promoting digitization, transparency, and regulatory innovation.
Prepared in consultation with the Pakistan Society of Actuaries (PSoA) and following international IAIS principles, the draft introduces gross premium valuation for long-term insurance, updated reserving methodologies for short-term policies, enhanced data quality standards, and better standardization of statutory submissions.
SECP Chairperson emphasized that the rules are designed to foster competition, remove regulatory barriers, and align Pakistan’s insurance framework with international best practices. The initiative aims to safeguard policyholders, improve shareholders’ understanding, and ensure the long-term sustainability of the insurance sector. The draft rules are open for public comment for 30 days, and consultation sessions will be held for industry stakeholders.