KARACHI, Jan 12: The insurance industry assured the chairman of the Securities and Exchange Commission of Pakistan (SECP) that it had the liquidity to absorb losses arising from the destruction / loss / damage to properties, goods, vehicles, etc., following the Dec 27 incidents.

The SECP chairman, Mr Razi-ur-Rehman Khan, had called a meeting of the insurance industry, which was led by the chairman of Insurance Association of Pakistan (IAP) with chief executives of most of the companies also present, a press release issued by the SECP stated.

The SECP statement said: “The capacity of the industry to absorb resulting losses was reviewed and the industry assured the Chairman, SECP, that eventual claims net of reinsurance cash call were well within the industry’s capacity to settle as the industry had sufficient liquidity.”

The apex regulator had called the meeting to take a direct assessment of the unprecedented countrywide destruction / loss / damage to properties, goods, vehicles, etc., resulting in massive losses suffered by individuals, traders, industrialists, etc., due to nationwide rioting following the unfortunate assassination of Mohtarma Benazir Bhutto and to review the industry’s capacity to settle all claims in an expeditious manner. The SECP press release stated that the IAP Chairman thanked the SECP for holding the meeting of the insurance industry at such a critical time which was affecting innumerable people across the country.

The industry assured the SECP chairman and public that documented claims would be met promptly and efficiently.

“The SECP chairman was also assured that the industry is fully capable of meeting the losses arising out of nationwide rioting following the death of the Mohtarama,” the SECP press release said.

It was decided that the industry will immediately submit to SECP a detailed analysis of the claims submitted to-date for further assessment and thereafter up-to-date figures will be provided on a weekly basis.

Reinsurance arrangements of the industry were also reviewed and the industry informed the Chairman, SECP, that satisfactory arrangements were in place and they do not foresee any problems in making any consequential cash calls, the SECP press release concluded.