In a significant development for Pakistan’s insurance sector, the Islamabad High Court (IHC) has suspended a controversial order issued by the Securities and Exchange Commission of Pakistan (SECP) against the United Insurance Company (UIC). The court’s decision grants interim relief to UIC, allowing it to resume its guarantee business operations while the matter undergoes further legal review.
Origins of the Case
The matter originated on May 20, 2025, when SECP exercised powers under Section 60 of the Insurance Ordinance, 2000, barring UIC from offering guarantee insurance products. The order stemmed from allegations that the company had consistently failed to fulfill its commitments regarding insurance guarantees. This raised concerns about UIC’s compliance and operational reliability.
The announcement received widespread media attention, severely impacting UIC’s public image and financial health. Many industry observers argued that the decision’s public nature intensified the damage by creating fear and uncertainty among clients and partners.
UIC’s Legal Recourse
After its internal appeal to the SECP Appellate Bench was rejected, UIC turned to the Islamabad High Court, filing a writ petition challenging the order. The petition described the regulatory action as legally flawed, procedurally unfair, and based on an unverified complaint.
Appearing for UIC, Advocate Ahmad Hassan argued that the company had been denied a fair hearing and that the SECP’s approach lacked transparency and due process. Acknowledging these concerns, the IHC suspended the order and instructed SECP to respond with a para-wise explanation within two weeks.
Emphasis on Fairness and Justice
The court expressed serious reservations about the legality of SECP’s intervention. In its observations, the IHC highlighted potential violations of natural justice, cautioning the regulator against applying pressure or acting without verified grounds. The remarks have drawn attention to a broader concern: ensuring that regulatory practices remain consistent with legal standards and don’t cross into territory that may harm stakeholders unfairly.
The Larger Industry Conversation
This incident has sparked a wider conversation within Pakistan’s financial community. Legal analysts and business leaders are calling for greater accountability and transparency in regulatory processes. While oversight remains a critical function, many believe it must be executed carefully and without unnecessarily harming businesses.
Sudden regulatory measures, especially when made public without thorough adjudication, can disrupt market confidence, discourage investment, and lead to job losses and economic instability. In a country with a fragile economic environment, such impacts can ripple across sectors.
UIC’s Reputation and Industry Role
Amid the controversy, industry professionals have raised concerns about what they perceive as a “media trial” of a reputable company. “Firms that generate employment and contribute to national growth must be protected from unfair reputational damage,” said a senior insurance executive.
UIC, which holds an AA+ credit rating and has been operating for more than two decades, is among the top five insurers in Pakistan. The company reported Rs. 13 billion in gross written premiums in 2024 and Rs. 4.5 billion in claim settlements, reaffirming its financial strength and service commitment. It also remains the largest employer in the country’s insurance sector.
Why Customers Choose United Insurance Company
- AA+ Credit Rating
- Rs. 13 Billion Premium Volume (2024)
- Rs. 4.5 Billion in Claims Paid (2024)
- Over 20 Years of Growth & Trust
- Largest Insurance Sector Employer
- Transparent, Fair, and Fast Service
- Nationwide Branch Network
- Tailored Insurance Plans for All Needs
Your Reliable Partner for a Secure Future
Choosing an insurer is about more than just paperwork—it’s about choosing peace of mind. With UIC, you’re choosing a partner that is financially strong, professionally reliable, and customer-focused.
Thousands of families, individuals, and businesses across Pakistan trust United Insurance Company for one reason: because they know they are protected by the best.
Customer-Centric Services with a Nationwide Reach
UIC’s expansive network of branches, dedicated support teams, and qualified agents ensures every client—whether individual or corporate—receives fast, friendly, and reliable service across the country.
Whether it’s motor, travel, health, fire, or marine insurance, UIC offers customized solutions tailored to the real-world needs of Pakistanis, making insurance accessible and practical.
Balancing Regulation and Business Rights
Many now see this case as a defining moment in the relationship between regulators and corporate entities. The IHC’s decision underscores the necessity of checks and balances in regulatory operations. Empowered oversight is vital, but it must remain grounded in fairness and be open to judicial scrutiny.
Moving forward, this case could set an important precedent for how regulatory actions are reviewed in Pakistan. To foster investor confidence and ensure business continuity, the country must develop a regulatory climate that avoids unnecessary disruption and maintains legal consistency.
Conclusion
The Islamabad High Court’s suspension of SECP’s order against United Insurance represents more than just legal relief for one company—it marks a critical turning point in the evolution of corporate regulation in Pakistan. It calls for a deeper conversation about fairness, process, and the role of oversight in a thriving economy. As proceedings continue, this case will likely serve as a benchmark for the rights of businesses within Pakistan’s legal and regulatory systems.
