The Securities and Exchange Commission of Pakistan has issued the draft Actuarial Valuation Rules, 2025 for public consultation, proposing a standardized framework for valuing insurance contract assets and liabilities across Life and Non-Life Insurance and Takaful businesses. The draft framework is aligned with International Association of Insurance Supervisors Core Principles and contemporary global actuarial practices, and incorporates the adoption of risk-based capital and supervisory regimes. Proposed requirements include gross premium valuation for long-term insurance and takaful, updated methodologies for premium and claims reserving for short-term insurance and takaful, principle-based and consistent actuarial assumptions, improved data quality practices, and greater standardization of submissions. Comments and suggestions can be submitted within 30 days of publication, and the SECP plans to schedule consultation sessions with industry stakeholders.

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