ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has drafted a five-year strategic plan for insurance sector to overcome major challenges being faced by insurance companies, as well as, policyholders.
The SECP held a media engagement with journalists at its Head Office here on Tuesday.
Akif Saeed, Chairman SECP affirmed SECP’s commitment to the growth of insurance sector and informed about SECP’s vision on the development of an inclusive, innovative and sound insurance sector by 2028. He also answered a number of questions on the topic of insurance alongside Aamir Khan, Commissioner Insurance.
Data revealed that out of 30 million registered vehicles, only 3 percent are insured. Less than 8 million people have obtained life insurance out of 241 million populations. Out of 8 million farmers below 10 percent have obtained crop insurance, etc. Out of 32 million registered properties, less than 5 lakh are insured, the SECP data said.
The Commissioner Insurance highlighted the key objectives of SECP for next five years, which revolve around the areas of policyholder protection, building resilience, innovation, cooperation & transformation and improved insurance coverage.
He stressed that for an insured Pakistan a dire need exists for a shared strategic vision to successfully launch and execute Pakistan’s first five-year strategic plan for insurance sector. Waseem Khan, Director Insurance Division at SECP, gave an overview of the journey to the formulation of five-year strategic plan, which involved active stakeholder engagement.
He shared key statistics of the insurance sector for the year 2022 including number of 42 active insurers, total premium of Rs. 552 billion, number of policies of 10 million, bifurcation of product-wise premium and the potential for growth of the insurance sector.
He informed that giving due consideration to the challenges of the insurance sector including structure of insurance industry, limited awareness, negative industry image and limitations in primary law, SECP is working on the achievement of certain operational and strategic outcomes.
He stated that the airlines, dams and power projects also need to be insured.
He further informed that to achieve the identified objectives, SECP has developed operational approach under certain board areas which mainly include ease of doing business, engagement with stakeholders, diversification and value enhancement, facilitate access to information, legislation modernisation and alignment with international standards and facilitate access to capital and reinsurance.
He also informed about the recently published reports on Insurance Industry Statistics and Motor Third Party Insurance and the upcoming reports on the areas of micro & inclusive insurance, creation of insurance pools and agriculture and crop insurance.
He also apprised the media on the upcoming insurance conference on the theme of “Journey to an insured Pakistan” and requested the media to play its role in raising awareness about value and utility of insurance.
Copyright Business Recorder, 2023
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