SECP Updates Qualification Requirements for Insurance Agents

The Securities and Exchange Commission of Pakistan (SECP) has revised the qualifications required for the appointment of insurance agents. The Commission is empowered to prescribe minimum qualifications for persons appointed as insurance agents, which may extend to educational requirements, experience in the industry, and membership of an approved trade or professional organization. Under the revised rules, the agents or designated persons shall also be required to attend a refresher course after every two years from the institute approved by the Commission or complete CPD hours as notified by the Commission from an approved institute. For persons entering into agency contracts with insurers after April 1, 2023, the following shall be the prescribed qualification in respect of a natural person, and in the case of a body corporate or a partnership, each of its designated persons engaged in insurance sales. For life insurance, Matriculate or Secondary School Certificate (SSC), and a sixty days foundation course based on a curriculum notified by the Commission, to be conducted by the respective Insurer or an institute approved by the Commission.  It shall also be examined and certified by an institute approved by the Commission within a period of six months from the date of entering into an agency contract. A Higher Secondary School Certificate or equivalent and 60 hours foundation course based on a curriculum notified by the Commission conducted by the respective insurer or an institute approved by the Commission, and shall also be examined and certified by an institute approved by the Commission within a period of six months from the date of entering into agency contracts. For non-life insurance, Higher Secondary School Certificate or equivalent and 60 hours foundation course based on a curriculum notified by the Commission conducted by the respective insurer or an institute approved by the Commission, and shall also be examined and certified by an institute approved by the Commission within a period of six months from the date of entering into agency contracts. Agents and designated persons may be given exemption from the requirement of the foundation course who meet such criteria and requirements as may be specified by the Commission through notification. The person who has completed the agent foundation course from an insurer/ approved institute and has obtained certification from an approved institute during agency with an insurer, will not be required to undergo the complete agent foundation course on joining the different insurer and may start an agency with another insurer after completing the refresher course.