Pakistan: Insurers' minimum capital hiked by US$1.9 mln to $4.8 mln (non-life) and $6.7 mln (life)
Source: Asia Insurance Review | Oct 2015
The Securities and Exchange Commission of Pakistan (SECP) has increased the minimum paid-up capital requirement for insurance companies by PKR200 million (US$1.92 million) to improve the capacity of local insurers to underwrite and retain larger risks.
The financial regulatory agency has amended the rules, under which the baseline paid-up capital requirement for non-life and life insurance companies are now increased to PKR500 million and PKR700 million respectively, according to local media reports.
The new capital requirements would be applied in a phased manner. The existing insurance companies would be allowed a period of two years till 31 December 2017 to meet the new requirements.
This is the second time that insurers are required to hike their capital since the enactment of the Insurance Ordinance 2000 which set the minimum paid-up capital requirements for non-life and life insurance companies at PKR80 million and PKR150 million respectively.