SECP Directs Insurance Firms to Establish Actuarial Function for Risk Assessment

The Securities and Exchange Commission of Pakistan (SECP) has directed all insurance companies to establish an actuarial function, which shall be commensurate with the nature, size, and complexity of its business. The SECP has issued an S.R.O.42(I)/2025 to introduce draft amendments to the Code of Corporate Governance for Insurers, 2016. Every insurer shall establish an actuarial function, which shall be commensurate with the nature, size and complexity of its business. The actuarial function shall, at a minimum: The actuarial function shall report directly to the Chief Executive Officer and shall have access to the Board to submit its findings on a regular frequency. However, the insurer shall ensure that the independence of the actuarial function is maintained and the actuarial function does not perform any such function(s) that may give rise to conflict(s) of interest. There shall be Head of the actuarial function appointed by an insurer. The Head of the actuarial function must fulfill the following requirements, SECP added.