Pakistan raises minimum capital requirementsApril 3 2015 by InsuranceAsia News Staff
Insurance companies in Pakistan will have to raise their paid-up capital, as the Securities and Exchange Commission of Pakistan (SEC) have announced increases to the minimum paid-up capital requirements for insurance firms.
The increases will be staggered, with life insurance companies needing a minimum paid-up capital of PKR500 million ($4.9 million) by December 31, 2015, an amount which will then increase by PKR50m ($490,000) at six-month intervals until it reaches PKR700 million ($6.8 million) by December 31, 2017.
Non-life insurance companies should have minimum paid-up capital of PKR300 million ($2.94 million) by December 31, 2015, and this figure will increase by PKR50 million at six-month intervals until it reaches PKR500 million by December31, 2017.
According to the SECP, raising the minimum paid-up capital requirements for insurers is an attempt to strengthen the country’s insurance sector.
Pakistan currently has 41 non-life insurers, nine life insurers, and one reinsurer.
- July 3
The Chinese conglomerate has bought London-headquartered asset manager Tenax Capital.
- June 20
It is a good time to profit take according to Gopikrishna Shenoy.
- June 11
Chinese regulator is examining could increase the cap on investments in equities of insurers' assets.
- June 7
The move will help insurers and reinsurers to transfer foreign capital home.