The Policy Board of SECP has approved the
The rules prescribe the standards for conduct of microinsurance business while keeping strong focus on consumer protection, transparency, and disclosure requirements. Microinsurance is small-scale insurance protection for low-income people against specific risks in exchange for a premium payment proportionate to the risks involved.
In order to serve the low-income population, which is mostly ignored by mainstream commercial insurance business, there is a need for small ticket-sized microinsurance products to protect crops, livestock, health, life, and domestic households.
Various developing countries have prescribed specific regulatory frameworks for microinsurance, while many developing countries are in the advanced stages of developing their regulatory framework. Microinsurance - if not supervised with minimum standards for its transparent conduct and fair management - does not produce the desired results.
For microinsurance to grow and benefit the masses in broader context, it is imperative that minimum standards for conduct of such business are prescribed. In order to achieve consensus and to take all stakeholders on board, the SECP had formed a working group on microinsurance to propose a regulatory framework.
The consultations were done with all relevant stakeholders, including the
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