Circular No. 02 of 2022, Islamabad, January 20, 2022

SROS: Circular No. 02 of 2022, Islamabad, January 20, 2022 GROWTH RATE SCENARIOS FOR LIFE INSURANCE AND FAMILY TAKAFUL ILLUSTRATIONS -2022 S EC P INSURANCE DIVISION Islamabad Circular No. 02 of 2022 Islamabad, January 20, 2022 SUBJECT: GROWTH RATE SCENARIOS FOR LIFE INSURANCE AND FAMILY TAKAFUL ILLUSTRATIONS -2022 Your kind attention is invited towards clause 8.1, 8.2 and 11.1 of the Directive for Life Insurance and Family Takaful Illustrations, 2016 (hereinafter referred to as the "Directive") notified via S.R.O 255(I)/2016 dated March 25, 2016. Life insurers and family takaful operators use three nominal growth rate scenarios and three inflation adjusted growth rate scenarios to demonstrate projected benefits to potential policyholders. The SECP specifies these growth rate scenarios based on long-term interest rate outlook prevalent in Pakistan. In this regard, the Commission in consultation with Pakistan Society of Actuaries has decided the growth rate scenarios for life insurance and family takaful illustrations to be 9%, 11% and…