The Securities and Exchange Commission of Pakistan (SECP) last month effected notification of the Corporate Insurance Agents Regulations, 2020, to strengthen the regulatory regime for the distribution of insurance through corporate insurance agents, including bancassurance.
The regulations also include a code of conduct for corporate insurance agents of insurance companies to clearly define their role and responsibilities while dealing with the policyholders.
They aim at curtailing mis-selling and ensuring the provision of sufficient and clear information regarding the terms and conditions of an insurance policy. The regulations also include measures to promote technology-driven channels of corporate insurance agents.
To protect policyholders’ rights, the Regulations require corporate insurance agents including banks to ensure the provision of clear and detailed disclosures to potential policyholders/customers.
The after-sales callback confirmation process has been improved and a basic script of callback confirmation has been included in regulations. The regulations also introduced an automatic commission claw-back provision.