The Securities and Exchange Commission of Pakistan has recommended increasing the number of Insurance Tribunals across the country and strengthening the implementation of decisions issued by the Federal Insurance Ombudsman as part of measures to improve insurance grievance redressal. The recommendations were outlined in the SECP report titled “Strengthening Insurance Grievance Redressal in Pakistan: Current Status and Strategic Way Forward,” issued on Friday. The regulator said improvements are required to make the grievance resolution framework more accessible, transparent and effective for policyholders.
According to the report, the number of Insurance Tribunals should be increased to achieve more equitable geographical coverage across the provinces. The SECP said broader availability of tribunals would improve access to justice for policyholders dealing with insurance-related disputes. It also recommended publishing a publicly available and regularly updated list of Session Courts designated as Insurance Tribunals. Such a list would provide greater clarity regarding the courts responsible for handling insurance matters and improve transparency within the existing grievance redressal structure.
The SECP also highlighted the importance of timely appointments to ensure that Insurance Tribunals remain operational. It recommended that chairpersons and technical members be appointed without unnecessary delays so that tribunals can continue functioning effectively. According to the regulator, maintaining the required composition of these tribunals is important for ensuring continuity in the handling of insurance disputes and preventing interruptions in the grievance resolution process.
The report further recommended strengthening the implementation of decisions issued by the Federal Insurance Ombudsman. The Ombudsman may make more effective use of powers available under applicable laws to support the implementation of its decisions, while the status of implementation could be disclosed periodically through its website. The SECP also recommended the issuance of periodic reports covering implementation progress. It said these measures would improve transparency and reinforce accountability within the insurance grievance redressal framework.
Insurance companies have also been advised to ensure complete compliance with Circular No. 7 of 2023 by clearly and prominently communicating their grievance redressal procedures to policyholders. This includes informing customers about the timelines applicable to complaint resolution. Clear communication of these timelines would help policyholders understand when they can expect a response or resolution while also allowing insurers to demonstrate compliance with their stated procedures and regulatory requirements.
For greater operational efficiency, the SECP has proposed transforming its XS Portal into an Integrated Insurance Grievance Management System. The proposed platform would function as a centralised, industry-wide database for insurance complaints while also serving as a monitoring and redress management system for the regulator. The initiative is intended to reduce manual intervention, improve regulatory oversight and create a more structured process for tracking complaints from their initial submission through resolution or escalation.
Under the proposed digital framework, policyholders would be able to lodge complaints directly against insurance companies through the XS Portal. Insurers would then investigate the complaints and provide responses through the same platform within the prescribed timelines. If an insurer fails to resolve a complaint within the defined period, or if a policyholder remains dissatisfied with the response, the matter could be electronically escalated to the SECP for regulatory intervention. The proposed approach would establish an end-to-end digital complaint resolution process, reducing reliance on manual correspondence while giving the regulator greater visibility over the handling and status of insurance grievances.
The recommendations form part of the SECP’s broader efforts to strengthen the insurance grievance redressal framework in Pakistan. By combining expanded tribunal coverage, stronger implementation mechanisms, clearer complaint procedures and a centralised digital platform, the regulator has outlined measures aimed at improving how policyholder complaints are submitted, monitored and resolved across the insurance sector.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.