Pakistan needs to track and embrace emerging trends in the insurance sector as the global insurance industry is undergoing technological advancements, evolving customers’ expectations for sustainable practices.
This was stated by the Caretaker Federal Minister for Finance Dr Shamshad Akhtar at the Securities and Exchange Commission of Pakistan’s (SECP) two-day International InsureImpact Conference 2023 while giving a keynote address to the session.
“Pakistan needs significant transformation in the insurance industry to address its fundamental challenges while catching up with global trends to maximize the value proposition of this industry,” she said.
Dr Akhtar emphasized the insurance industry to recognize that the risks are growing, both globally and nationally, demanding adequate coverage for people and businesses. She said that SECP’s 5-year strategic plan will set the tone for future policy, legal, and regulatory landscape. Incorporating the recommendation of the insurance industry reform committee would be a step in the right direction.
She suggested focusing on mainstreaming global best practices, reducing the cost of doing business, digitizing the operations, and making effective use of technology generally.
SECP Chairman Akif Saeed, in his welcome address, informed the participants about SECP’s determination to work closely with industry stakeholders to align a strategic vision, propel economic growth, and cater to rising community aspirations. Talking about the 5-year strategic plan, he added that five years down the lane, SECP expects to capitalize on the digital ecosystem, increased outreach of insurance, growth in the Takaful sector, and enhanced reinsurance capability of the sector.
Setting the onset of the conference, SECP Commissioner Insurance, Aamir Khan, in his address pointed towards the key focus areas of legal and governance structure, tax reforms, awareness and perception, and the need for collaborations and embracing technology for rapid development of the sector.
Deputy Country Director, Asian Development Bank in Pakistan, Asad Aleem, commended the efforts of SECP to strategize the development of the insurance sector in Pakistan through a 5-year plan. He said that ADB would continue to support such initiatives for the sustainable development of the insurance sector.
Musa Alpan Bahar, Project Coordinator at TCIP, presented a case study on the Turkish Catastrophe Insurance Pool. He informed the participants that Turkey is one of the most seismically active regions in the world.
Musa informed that in Turkey, the compulsory earthquake insurance model is a very well-designed system. The 2023 earthquake in Turkey affected 14 million people, causing a total economic loss of $103 billion and an insured loss of $5 billion. He said that the TCIP made payments of $34 billion to more than 473,000 claims.
Waseem Khan, SECP’s head of insurance, presented the 5-Year Strategic Plan and shared details of strategic outcomes and actionable items. Panel discussions were held on topics such as disaster risk and crop insurance, taxation issues, improving industry perception, and enhancing policyholder protection. The panelists highlighted certain key areas to be included in the draft 5-year plan before its final launch and requested SECP to continue its current inclusive approach by taking the industry onboard on all policy decisions.
Source: Pro Pakistani