ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has released the draft Actuarial Valuation Rules 2025 for public consultation, aiming to enhance actuarial practices in the insurance and Takaful sectors.
The proposed rules, which apply to both life and non-life insurance, are designed to align with the SECP’s five-year strategic plan, “Journey to an Insured Pakistan,” according to a release issued on Friday.
The draft rules establish a comprehensive framework for the valuation of insurance contract assets and liabilities. Developed in consultation with the Pakistan Society of Actuaries (PSoA), the rules follow the International Association of Insurance Supervisors’ (IAIS) Core Principles and incorporate global actuarial best practices. The proposed framework also includes provisions for adopting risk-based capital and supervisory regimes.
The SECP’s chairperson highlighted that these rules are part of the Commission’s broader efforts to foster a sustainable and competitive insurance sector. “Developing a vibrant and sustainable insurance sector is a key focus of our five-year strategic plan. We are committed to ensuring a level playing field, promoting competition, and meeting the highest international standards,” the chairperson said.
Key provisions of the draft rules include gross premium valuation for long-term insurance and Takaful businesses, updated methodologies for premium and claims reserving in short-term insurance, and the adoption of principle-based, consistent actuarial assumptions.
The rules also aim to improve data quality and standardise submissions in line with market-consistent reserving practices.
Published in Dawn, September 13th, 2025
