promotion of the micro-insurance market SECP take Steps

The Securities and Exchange Commission of Pakistan (SECP) is taking vigorous steps for the promotion of the micro-insurance market to enhance the insurance penetration and financial inclusion. It is being done in the wake of the Micro-insurance Rules that were issued to promote the micro-insurance market in Pakistan.The SECP is encouraging all the insurance companies to include micro-insurance business in their annual business plans. In this regard, a few steps, which SECP is considering are to have lower capital requirements for dedicated micro-insurance companies or to reduce solvency requirements relating to micro-insurance business.Another step to promote micro-insurance is by encouraging the insurance companies to invest in necessary technological infrastructure. For this purpose, the SECP may relax the requirements relating to admissibility of investment in technological infrastructure for the purpose of solvency.
Serious efforts towards micro-insurance at the national level only picked up in the last decade with the advent of microfinance institutions (MFIs) and a mushrooming growth of Non-government Organisations (NGOs). However, there is still tremendous scope for growth in this area.