Insurance Sector In Pakistan Essay

611 words - 3 pages

As of November 07, 2007 there were 637 companies which were listed on Karachi Stock Exchange with a total market capitalization of Rs. 4121 billion (66 billion $). This figure has registered an increase now and our Karachi Stock Market is approximately US$ 72 billion. Out of this financial sector constitutes 41% of the total market capitalization of Karachi Stock Exchange. However, the Insurance Sector is a small one and needs immediate attention for its growth, development and rapid expansion to meet the challenge of 21st Century for accelerating socio-economic growth of Pakistan with an emphasis on wider prosperity.

Insurance Sector has registered a very slow growth in the history of Pakistan. Based on our research, the following conclusions emerge:
1. Listed insurance sector on Karachi Stock Exchange in terms of companies is only 4.4%.
2. Share of listed insurance sector on total listed companies on Karachi ...view middle of the document...

Therefore, these are sick. They need revival.
8. In the case of life insurance there is a vast scope. State Life Insurance Corporation of Pakistan should be immediately privatized. Their Mission Statement should be reviewed and revisited and on war-footing Insurance Policy of a vibrant nature should be developed so that Insurance Sector starts serving the economy of the country. As of today, excluding Group Insurance, there are hardly 2.5 million people in a total population on 166 million who enjoy the life insurance cover. This percentage requires to be given a quantum jump so that its expansion is seen for the benefit of the community. In this respect, we plan to develop a draft Insurance Policy for submission to the democratic Government of Pakistan so that they give a serious attention to this critical area and also develop insurance (Conventional) and Takaful (Islamic Insurance).

One of the biggest problem in Pakistan has been that no attention has been given in the past to produce qualified insurance experts through the Universities. No autonomous institute with statutory recognition exists in the country. It is high time that the profession is restructured on the lines of UK Institute of Chartered Insurance and statutory recognition is given to such an Institute for serving the noble cause of developing professionally qualified people in the country. Moreover, it is pertinent to note that the Father of the Nation, Quaid-e-Azam Muhammad Ali Jinnah on April 18, 1948 while delivering his address of welcome to Edward College, Peshawar had stated as under:

It is hoped that the stakeholders will rise to the occasion and the Government of Pakistan, Securities & Exchange Commission of Pakistan and other regulatory bodies, Ministry of Commerce, Insurance Companies, Insured Persons, Students, Teachers and other representatives of civil society will make an enriched contribution in strengthening the frontier of HRM / HRD so that the yawning gap which existed in the past to serve the insurance sector is minimized and there is a real flourish of Insurance Sector to serve the economy of the country in a befitting manner. Earlier this is done the better.

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