Key Takeaways
- SECP recommends increasing Insurance Tribunals and SDRCs.
- A digital complaint system is proposed to improve grievance redressal.
- The aim is to reduce complaint-resolution times and improve accountability.
The Securities and Exchange Commission of Pakistan (SECP) has proposed significant improvements to the insurance grievance redressal system, aiming to enhance the experience for policyholders. In its report, 'Strengthening Insurance Grievance Redressal in Pakistan: Current Status and Strategic Way Forward,' SECP outlined several measures to address existing issues.
According to the report, the current grievance mechanisms received 37,029 complaints in 2025. To tackle this, SECP has recommended increasing the number of Insurance Tribunals and Small Dispute Resolution Committees (SDRCs) based on geographical needs. The regulator also proposed establishing an integrated digital complaint system to facilitate easier and faster resolution of complaints.
SECP Chairman Dr Kabir Ahmed Sidhu emphasized the importance of these changes, stating, 'Through stronger coordination and the use of technology, we aim to reduce complaint-resolution times, improve accountability and ensure that every policyholder has access to an effective grievance redressal forum.'
The report further suggested that the Ministry of Law and Justice should publish a list of Sessions Courts designated as Insurance Tribunals and ensure timely appointments of tribunal members. It also proposed expanding the scope and geographical coverage of SDRCs, periodically reviewing their financial thresholds, and digitizing their operations through online complaint submission and document sharing.
To improve coordination among grievance forums, SECP recommended a formal mechanism for sharing information and consolidating complaint data between the SECP, Federal Insurance Ombudsman, Wafaqi Mohtasib, Insurance Tribunals, SDRCs, and insurance companies. The report also called for including complaint volumes, resolution rates, disposal times, and emerging trends in the Insurance Industry Statistics Report to support evidence-based regulatory oversight.
To address overlapping jurisdictions, SECP proposed legal and administrative measures to transfer complaints concerning public-sector insurers to the Federal Insurance Ombudsman, in line with an understanding reached among relevant authorities. It also recommended that grievance forums publish complaint-resolution timelines and that insurers clearly inform policyholders about available grievance procedures.
The report highlighted the need for a coordinated public-awareness campaign and a stronger role for the Insurance Association of Pakistan in promoting consistent complaint-handling practices across the insurance industry. Dr Sidhu concluded, 'Stronger coordination and greater use of technology could help reduce complaint-resolution times and improve accountability.'
The proposed measures are aimed at creating a more efficient and transparent system for policyholders, ensuring that their grievances are addressed in a timely and effective manner.
Through stronger coordination and the use of technology, we aim to reduce complaint-resolution times, improve accountability and ensure that every policyholder has access to an effective grievance redressal forum.
Dr Kabir Ahmed Sidhu, SECP Chairman
