SECP proposes more insurance tribunals, digital complaint system

The Securities and Exchange Commission of Pakistan (SECP) has proposed expanding the number of Insurance Tribunals and Small Dispute Resolution Committees (SDRCs), as well as creating a unified digital complaint system to enhance grievance resolution for policyholders nationwide. This recommendation is outlined in the SECP's report titled "Strengthening Insurance Grievance Redressal in Pakistan: Current Status and Strategic Way Forward," which analyzed current insurance complaint resolution methods.

The report revealed that existing grievance mechanisms handled 37,029 complaints in 2025. SECP suggested the Ministry of Law and Justice augment the number of Insurance Tribunals according to regional requirements, publish a list of Sessions Courts serving as Insurance Tribunals, and ensure timely tribunal member appointments. Additionally, the regulator recommended broadening SDRCs' scope and geographical reach, periodically reviewing their financial limitations, and digitalizing processes through online complaint submission and document sharing.

To improve coordination between grievance forums, SECP advocated for a structured information-sharing mechanism and consolidated complaint data among SECP, Federal Insurance Ombudsman, Wafaqi Mohtasib, Insurance Tribunals, SDRCs, and insurance firms. The report also emphasized integrating complaint volumes, resolution rates, disposal times, and emerging insurance industry trends into the Insurance Industry Statistics Report to facilitate data-driven regulatory oversight.

Addressing overlapping jurisdictions, SECP proposed legal and administrative measures to transfer complaints related to public-sector insurers to the Federal Insurance Ombudsman, based on mutual agreement among relevant authorities. The SECP also recommended that grievance forums disclose complaint-resolution timelines and that insurers clearly communicate available grievance procedures to policyholders.

Furthermore, a coordinated public awareness campaign and a stronger role for the Insurance Association of Pakistan in promoting uniform complaint-handling practices across the insurance sector were recommended.

SECP Chairman Dr Kabir Ahmed Sidhu emphasized that enhanced coordination and advanced technology could reduce complaint-resolution times and bolster accountability. He stated, "Through stronger coordination and the use of technology, we aim to reduce complaint-resolution times, improve accountability, and ensure every policyholder has access to an effective grievance redressal forum."

The report outlines an actionable framework, assigning proposed measures to appropriate stakeholders to enhance grievance redressal access and overall policyholder experience.