The Securities and Exchange Commission of Pakistan (SECP) has substantially enhanced the minimum required amount of paid-up capital for insurance companies including existing life insurers and non-life insurers.

According to S.R.O.1588(I)/2024 issued by the SECP, the amount in the notification given shall be the minimum required amount of paid-up capital for an existing life insurer and non-life insurer registered under the Ordinance to carry on insurance business.

Under the enhanced requirements, the minimum paid-up capital requirement for a life insurer would be Rs 1,000 million for the year 2025 and the minimum paid-up capital requirement for a non-life insurer would be Rs 800 million for the year 2025.

Before December 31, 2025, the minimum paid-up capital requirement for a life insurer is Rs 700 million whereas the minimum paid-up capital requirement for the non-life insurer is Rs 500 million.

The minimum paid-up capital requirement for an insurer who, after the insertion of this rule, desires to register itself, shall be Rs. 3,000 million for a life insurance business and Rs. 2,000 million for a non-life insurance business.

The SECP has also mentioned the amount given which shall be the minimum required amount of paid-up capital for a micro insurer and digital-only insurer, registered under the Ordinance to carry on insurance business.

The minimum paid-up capital requirement for a life microinsurer would be Rs 150 million; for non-life microinsurer Rs 80 million; life digital-only insurer Rs 250 million and minimum paid up capital requirement for non-life digital-only insurer would be Rs 100 million.

The life digital-only insurer shall have a minimum paid-up capital in accordance with the requirement of sub-rule (2) of rule 11; Provided that where any life digital-only insurer is underwriting life insurance saving products, before the insertion of this clause, the minimum paid-up capital shall be by the requirement of sub-rule (1) of rule 11, SECP added.