ISLAMABAD, June 18: The Securities and Exchange Commission of Pakistan (SECP) has increased the minimum premium limit for group life insurance required for the certification of appointed actuary of a life insurer.

The limit has been increased from Rs1 million to Rs2m, in this regard, the SECP has issued circular No 11/2013 amending circular No.9/2005 which will take effect from July 1, 2013.

Actuarial certification is required to ensure the soundness and workability of group life insurance premium rates and other terms and conditions.

The decision to increase the minimum premium limit for group insurance was based on market survey of group life insurance market conducted by the SECP to assess effectiveness of the regulatory measures introduced in 2005.

The survey showed that the number of group life policies with premium exceeding 1m rupees had increased considerably causing practical difficulties for the life insurers and the appointed actuaries.

The survey also demonstrates that overall claim ratios had been reasonably stable over the last six years. Considering the positive trend in group insurance sector, the SECP decided to increase the limit from Rs1m to Rs2m for the certification by appointed actuary of a life insurer.