{
  "id": 7777510,
  "title": "SECP proposes reforms to strengthen insurance guarantees",
  "url": "https://urgent.news/2026/09/16/secp-proposes-reforms-to-strengthen-insurance-guarantees",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-16T11:24:32.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40439777/secp-proposes-reforms-to-strengthen-insurance-guarantees"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Commission of Pakistan (SECP) has proposed reforms to bolster insurance guarantees, focusing on insurance bonds and guarantees, particularly for construction projects, government contracts, public procurement, and trade. These proposals encompass bid and performance bonds, mobilization advance guarantees, and customs guarantees issued by insurers. Insurance guarantees serve as financial protection for government departments, project owners, and commercial entities in case contractors or businesses fail to fulfill their contractual obligations.\n\nThe reforms put forth by the SECP aim to introduce more transparent conditional and unconditional guarantee contracts, enhance solvency and reserving requirements, implement risk-based pricing, require mandatory indemnification agreements, and establish adequate reinsurance arrangements. The overarching objective is to minimize contractual ambiguity, expedite claim settlements, and reduce prolonged litigation.\n\nFurthermore, the SECP suggests categorizing credit and suretyship insurance as a restricted class of insurance business. This classification would enable stricter oversight of insurers, ensuring that only financially robust entities engage in such transactions. Dr. Kabir Ahmed Sidhu, SECP Chairman, emphasized that these reforms would fortify risk management, bolster insurers' financial capabilities, enhance contractual clarity, and bolster public trust in insurance-backed bonds and guarantees.\n\nThe SECP has extended an invitation to insurers, contractors, businesses, government entities, and other stakeholders to provide feedback on the Consultation Paper, which is accessible on their official website.",
  "summary": "The Securities and Exchange Commission of Pakistan (SECP) has proposed reforms to make insurance bonds and guarantees safer, clearer and more reliable, particularly for construction projects, government contracts, public procurement and trade. The proposed framework covers bid and performance bonds, mobilisation advance guarantees and customs guarantees issued by insurers. These instruments…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}