Microfinance Horizon

18 December 2010 [Brecorder]

The apex regulator of the insurance industry in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has set-up a task force with three subgroups to develop microinsurance in Pakistan. Three sub-groups will focus on their respective areas including the development of regulatory framework for microinsurance, discussing the feasibility of a viable and specialised microinsurance companies and recommending sustainable business model for microinsurance business.

This 16-member task force is comprised of major stakeholders including representatives from the SECP, the State Bank of Pakistan, insurance companies, microfinance banks, Insurance Association of Pakistan, Pakistan Microfinance Network, Kashf Foundation, and National Rural Support Programme. It is supported by the Center for International Private Enterprise. Task force is headed by the the SECP Executive Director (Insurance).

The task force met on December 6-7 in Karachi to compare notes on proposed regulatory framework and the sustainable business models for delivering microinsurance. In Pakistan the insurance penetration is a mere 0.7% of the GDP, this initiative is expected to help in creating a transparent and enabling environment thereby increasing the insurance density and affordable outreach to low-income people. The task force will next meet in a month’s time to discuss the findings of subgroups.