Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has introduced a new illustration format for life insurance and family takaful products with savings components. This initiative, encapsulated in S.R.O. 1088 (I)/2024, is designed to enhance transparency, standardize presentations of illustrative values, and protect potential policyholders from misleading information.
According to Securities and Exchange Commission of Pakistan, the revised format aims to simplify product illustrations, making them more comprehensible for consumers. Key changes include explicit disclosures of allocation charges, reduced illustration scenarios from three to two, and the elimination of inflation-adjusted values to display only actual amounts allocated to policyholder accounts. These adjustments are intended to make the details of life insurance and family takaful products clearer, aiding consumers in making informed decisions about long-term financial protection and savings vehicles.
The directive follows extensive consultations with stakeholders including life insurance and family takaful companies, the Insurance Association of Pakistan, and the Pakistan Society of Actuaries. It has been made available on the SECP’s official website for public access.