In order to effectively develop the reinsurance market in Pakistan, the draft Insurance Bill, 2016 aims at introduction of substantial provisions providing the criteria for registration of a local reinsurer along with paid up capital, statutory deposit, solvency requirements etc. The draft Insurance Bill, 2016 also proposes requirements for authorisation of foreign reinsurers engaging in reinsurance business in Pakistan.
According to the proposed section 83 of the draft Insurance Bill, 2016, the SECP has introduced a provision of 'authorisation of foreign reinsurers to carry on reinsurance business in Pakistan'.
An eligible person desirous of undertaking reinsurance business in Pakistan shall obtain from the Commission a certificate of authorisation to carry on life reinsurance business, non-life reinsurance business or composite reinsurance business. The eligible person required to be authorised shall make an application to the Commission for authorisation as a person authorised to carry on life reinsurance business, non-life reinsurance business or composite reinsurance business, as the case may be, SECP said.
An application for authorisation shall be made in writing, in either the English or the Urdu language and shall be signed by authorised persons on behalf of an eligible person. An application for authorisation shall contain such information and shall be accompanied by such documents, reports, certificates and other matters as are required under this Part or the regulations made hereunder, SECP marinated. Where an applicant has made an application under this section for authorizationand, before authorisation is granted or refused, a change occurs in the particulars specifiein the application or in the matters contained in a document required to accompany theapplication, the applicant shall, within 14 days after the occurrence of the change, give to the Commission notice in writing signed by any two authorised persons and specifyinparticulars of the change, SECP added.
Copyright Business Recorder, 2017