ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday constituted a working group of actuaries to develop and implement Risk-based Capital regime in the country.

The existing solvency regime, despite taking in to account the liquidity, credit, market, insurance risks etc. in calculation of solvency through admissibility of assets test, does not quantify various risks borne by insurers.

Therefore, it does not deliberate on the adequacy of capital keeping in view the undertaken risks.

Published in Dawn, June 4th, 2020