·
There has
been a consistent decline in the number of life insurance companies mainly due
to limited demand for life insurance on account of small urban market and presence
of state-owned corporation, which enjoys almost a complete monopoly in the
market and thus leaves very little share for other companies.
·
Pakistan’s public healthcare system faces
challenges in the form of rural-urban disparities in healthcare delivery, an
insufficient number of doctors, nurses, medical technicians, and limited choice
in terms of physician practitioners.
·
Health
insurers are also partnering with organizations outside the segment to offer
health insurance plans to customers in order to increase their market share.
Ken Research announced
its latest publication on, ‘Personal
Accident and Health Insurance in Pakistan, Key Trends and Opportunities to 2019’,
which provides detailed information on the market trends in the Insurance
market. In addition, report is a comprehensive report, providing detailed
analysis of the market trends, drivers, challenges in the Pakistani personal
accident and health insurance segment. In addition, it provides insight
regarding major players in the industry.
The insurance industry in
Pakistan is relatively small compared to other developing countries in the
region. The insurance penetration and density remained very modest as compared
to other jurisdictions while the insurance sector remained underdeveloped
relative to its potential. Since, there has been a consistent decline in the
number of life insurance companies mainly due to limited demand for life
insurance on account of small urban market and presence of state-owned
corporation, which enjoys almost a complete monopoly in the market and thus
leaves very little share for other companies.
Additionally, Pakistan has quite low GDP per capita, low
literacy rate and low women participation and empowerment in society, which
further indicates low purchasing power
and thus indicates that total population is living below poverty line.Hence,all
these factors have contributed towards low share of Pakistan insurance industry
in the world market. Pakistan’s public healthcare system faces challenges in
the form of rural-urban disparities in healthcare delivery, an insufficient
number of doctors, nurses, medical technicians, and limited choice in terms of
physician practitioners
Almost 97% of Pakistan’s population is Muslim and the
reason behind the low insurance penetration rate in this country is that
insurance is regarded as unethical from a religious point of view by a large
segment of people. Therefore, the government of Pakistan has been actively
involved in promoting Islamic Insurance (Takaful) over the last few years. The Insurance Department of the Securities and
Exchange Commission of Pakistan (SECP), the regulatory body for insurance,
introduced Takaful rules in 2005 to regulate operations of Takaful insurance
companies; the act also allows conventional insurance companies to transform
into Takaful-based companies.
Initially, Pakistan was slow to respond to
the global Takaful trend but, within a brief period, five Takaful companies
(two general and three families) were established, and more companies are
scheduled to enter the market in the near future. Foreign investors,
particularly from Gulf countries, are heavily investing in Pakistan’s Takaful
industry. Actuaries in Pakistan are increasingly in demand from Takaful
companies to employ their analytical skills to this new industry. Health
insurers are also partnering with organizations outside the segment to offer
health insurance plans to customers in order to increase their market share.
In addition to underwriting profits,
Pakistani personal accident and health insurance insurers are focusing on
generating returns on investments, aided by improving economic conditions.
Since in developing countries (most of which have large Muslim populations)
like Pakistan, insurance is not being made available compulsory where it is
needed the most, where human well-being is at the lowest and vulnerability is
at its highest.
Moreover, in Pakistan insurance companies act as
financial intermediaries and it has shown strong resilience to a challenging
macroeconomic environment and global development. Since the insurance sector
plays an important role in the service-based economy and its services are now
being integrated into wider financial industry.
The major
players in the insurance industry in Pakistan are as follows:
·
Allianz EFU Health Insurance
·
Asia Care Health & Life Insurance Co. Ltd
·
Adamjee Insurance Company Ltd
·
East West Life Assurance Company Ltd
·
EFU General Insurance Company
·
IGI Insurance Ltd
·
Askari General Insurance Company Ltd
·
Jubilee General Insurance Company Ltd
To know more on coverage, click on the link
below:
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Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
