Amir Khan

A meticulous review of international best practices in insurance regulation paves the way for formulation of a comprehensive and visionary five-year plan, aptly named "Journey to an Insured Pakistan." Driven by a vision of inclusivity, innovation, and stability, the insurance sector in Pakistan is poised for a remarkable transformation by 2028, Massab Abbasi, Deputy Manager at the State Life Insurance Pakistan, told WealthPK. The five-year plan was officially unveiled during the two-day (Dec 13-14) International Insure Impact Conference 2023 (IIC 2023). This strategic move aims to encourage extensive deliberation and engagement with industry experts and practitioners. This strategic direction aims to fortify the pillars of the insurance ecosystem: policyholders, insurance providers, and development of insurance intermediaries. “Recognizing the importance of inclusivity, the Securities and Exchange Commission of Pakistan's team had an offsite visit in June 2023, engaging with industry experts to craft a shared strategic direction with the buy-in of all stakeholders,” he added. Abbasi highlighted that these interactions led to the refinement of the draft strategic direction, now known as "Journey to an Insured Pakistan," reflecting a collective vision for the future. “Targeted outcomes paint a picture of a thriving insurance landscape.

Millions more lives will be covered under the life insurance policies, propelling the insurance penetration rate to new heights. Takaful, an ethical insurance model, will see a significant boost, exceeding 30% of the market,” he emphasized. Motor Third-Party Liability coverage will expand, providing essential protection to drivers and passengers alike. Local retention of insurance premiums will surpass 60%, keeping capital within the country and fostering economic growth. Digital distribution channels will claim a significant market share, revolutionizing the way insurance is accessed and purchased. Private health insurance will gain traction, accounting for over 15% of total premiums, ensuring greater access to quality healthcare. Agriculture insurance will be made available to non-loaned farmers, mitigating the risks associated with unpredictable weather and market fluctuations. Disaster insurance products will offer the much-needed protection against natural calamities. “Beyond these impactful outcomes, the mission also focuses on operational excellence. Premium growth is projected to soar from Rs553 billion to Rs1,221 billion by 2028, a testament to the sector's potential,” he pointed out. He said the unveiling of "Journey to an Insured Pakistan" marked a significant milestone, heralding a new era for Pakistan's insurance sector.

Credit: INP-WealthPk