ISLAMABAD, December 12: The Securities and Exchange Commission of Pakistan (SECP) will be hosting the International InsureImpact Conference 2023 in Karachi on December 13 and 14, 2023. The broad theme underpinning the conference is “Journey to an Insured Pakistan.” The Federal Minister of Finance and Revenue, Dr. Shamshad Akhtar, will kick off the two-day conference.
While speaking to the media, SECP Chairman Akif Saeed stated that the insurance industry is an important component of Pakistan’s financial sector and that the sector needs to be reenergized and steered to meet the future needs of the modern insurance industry. According to Akif, the vast unexplored market is a tremendous opportunity, and the International Insure Impact Conference provides critical insights into the most recent global strategies, solutions, and innovations.
SECP Commissioner Insurance, Mr. Aamir Khan, said that the SECP, through its five-year plan, aims to boost insurance penetration in Pakistan by utilizing technology, raising awareness about insurance products, and promoting crop and disaster risk insurance.
Speaking about the insurance sector’s enormous growth potential, Khan informed attendees that there are 42 insurance companies in Pakistan, with a total premium of Rs. 552 billion and 10 million active policies. Aamir cited data from SECP’s studies on various insurance sectors, which revealed that out of 30 million registered vehicles in Pakistan, barely 3 percent are insured, and out of 241 million people, less than 8 million had life insurance. Crop insurance is used by less than 10% of the 8 million farmers, and less than 500 thousand of the 32 million registered properties are insured.
Mr. Waseem Khan, Director Insurance Division at SECP, gave an overview of the draft 5-year strategic plan. He said that the plan is drawn to overcome major challenges being faced by insurance companies and policyholders and to develop and align the market with international standards by 2028.
Waseem said that through the 5-Year Strategic Plan, the number of lives covered will be raised to over 15 million individuals, insurance penetration is targeted at up to 1.5%, the share of digital distribution will rise to 5 percent, the share of Takaful in the overall insurance sector is targeted at above 30 percent, and motor third party insurance coverage will be above 20 percent. He said that the plan aims to increase the local retention ratio of insurance to below 60 percent and the private health insurance premium to over 15 percent of the total premium. The strategic plan also includes a programme to ensure the availability of agriculture insurance for non-loanee farmers, the availability of disaster insurance products, and the availability of annuity products for VPS investors and individual retirees, with a target premium growth of Rs. 553 billion to Rs. 1,221 billion by 2028.
Policymakers and experts in the global insurance and ancillary industries from Turkey, the Philippines, Saudi Arabia, the UAE, Bahrain, and Luxembourg are expected to participate in the conference. The conference has received an overwhelming response from the insurance industry and other financial sector players.