KARACHI - Pakistan non-life insurance stands 0.3 of GDP with immense scope for insurance companies to tap unserved Pakistan’s densely populated market through their products of life and non-life insurance, Tahir Ahmed Chief Executive Officer, Jubilee General Insurance said.
Speaking at the concluding session of “ 2nd SAARC Insurance Regulators’ Meet and International Conference here on Wednesday, he said the government, stakeholders and industry players should be on one page and implement a national plan to get the people and industries insured. He said the national insurance scheme should be introduced and implemented at faster pace in true letter and spirit which could enhance the penetration rate of 0.3 percent to 6.5 percent in only one year.
The insurance companies do have potential to book Rs 20 billion premium amount of insurance from various sectors from their policy as it is estimated through a study conducted by State Bank of Pakistan, Security Exchange Committee of Pakistan and different industry players.
In the non-life insurance sector, agriculture sector is the biggest having 21 percent contribution in the GDP but when it comes to insurance, it is 100 percent undeserved. The sector could be tapped to generate billion of rupees in premium whereas the rate of GDP could be enhanced to 4.5 percent from the current 0.3 percent.
As far as vehicle insurance is concerned, merely 3 million vehicles are insured out of the total 15 million vehicles plying on our roads regardless of the fact the insurance is mandatory for all vehicles. This could enhance the penetration rate from 4.5 percent to 5.5 percent of GDP.
Speakers at the conference stressed the need to enhance efforts to give financial cover to trade, business and people as natural calamity devastated economy of many countries in the SAARC region.
Fredrick de Beer, CEO Adamjee Insurance, Taher G Sachak, CEO EFU Life Insurance, Gerry Gunadas, CEO Continental Insurance Lanka also spoke the conference.
The delegates of regional and international bodies deeply cherished the huge value adding initiative of the Securities and Exchange Commission of Pakistan and considered as a milestone achievement in the history of regional insurance industry.
They also recommended that such partnership building activities should take place more frequently so as to enable more effective knowledge and experience exchange across the borders.
The conference was closed with thank you note of the Commissioner (Insurance) Mohammed Asif Arif who appreciated the will and intent of regional partners to proceed towards collaboration and also appreciated the international bodies who had contributed to the venture.
The grand gathering has greatly helped rejuvenate the image of Pakistan in the regional and international community. The delegates seemed to be touched by the hospitality and expressed appreciation on the friendly and welcoming attitude of the Pakistan society.
It is pertinent to mention that Pakistan was elected for the Chairmanship of the SAARC Insurance Regulators’ Forum during the SAARC Insurance Regulators Meet. The next conference will be held in Katmandu, Nepal as proposed by the Insurance Regulatory Authority of Nepal which was unanimously agreed by all respective authorities.