SECP registers first third party administrator for health insurance

ISLAMABAD – November 17, 2015 – The Securities and Exchange Commission of Pakistan (SECP) has registered country’s first third party administrator for health insurance services.

A Third Party Administrator (TPA) is a business unit that through efficient technological processes provides effective claim administration on behalf of insurers. The SECP had recently issued the Third Party Administrators for Health Insurance Regulations, 2015 for developing health insurance business in Pakistan.

In line with its quest to develop the health insurance sector in Pakistan, the SECP has allowed M/s Tawasul HealthCare TPA (Private) Limited to commence TPA business, the first registered and licensed TPA of Pakistan. It is understood that the grant of registration to the first TPA company in Pakistan shall pave way for the other interested parties to start TPA business thereby benefitting our health insurance sector manifold through more improved, organized and swift services to health insurance policyholders.

The TPA regulations regulate the ‘outsourcing’ of certain tasks and administration activities related to health insurance, which can be performed in a much efficient and low-cost manner and thus results in the overall profitability of the business with improved customer services for the insurers and the medical service providers.

The health insurance market in Pakistan is at an infancy stage as compared with other sub sectors within the insurance industry. Less-developed health and hospital infrastructure, low level of disposable incomes and severe lack of awareness are considered to be the reasons for an under-developed health insurance sector resulting in low level of health insurance penetration in Pakistan.