The Securities and Exchange Commission of Pakistan (SECP) has issued new financial guidelines for life and non-life insurance companies under draft amendments to the Insurance Rules, 2017.
The amendments will take effect once the IFRS17 becomes effective for both life and non-life insurers and the move is aimed at standardising financial reporting across the insurance sector in line with global accounting practices.
Under the new framework, life and non-life insurers will be required to submit a statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows in accordance with annexed formats. Additional disclosures include disclosure 100 and disclosure 101 under IFRS17 must be provided separately for each class of business defined under section 4(1) of the insurance ordinance.
The SECP said accompanying notes to the statements must follow IFRS and include segmental information in the prescribed format. Annexure II of the Insurance Rules will be updated, replacing existing forms and notes (1–51) for life insurers with new versions.