Taking advantage of the growing digitalisation in the country, some divisions of the insurance sector are showing phenomenal growth.
“Sectors such as health insurance are booming due to digitalisation that has contributed to the overall growth of the insurance industry,” underlined State Life Insurance Corporation of Pakistan (SLIC) board member Hamayun Bashir while talking to The Express Tribune.
“Normally, we witness 5-10% growth, but due to digitalisation we are witnessing growth in three digits,” he remarked, adding that “we still have a long way to catch-up; at least 10 years of digital improvements in the insurance sector”.
“Pakistan’s market penetration is 0.5%, while the global rate is 3.3%,” SLIC Project Manager Corporate Communication Kapeel Kumar underlined.
He mentioned that his company reported more than 130% growth in health business and 100% growth in overall new businesses.
SLIC Chairman Shoaib Javed Hussain was of the view that “SLIC serves more than 140 million Pakistanis”.
“Within one year, we have evolved SLIC into a rapidly growing organisation driven by product and digital innovation with a focus on further enhancing policyholder care and services.”
“Our aim is to be a technology-driven enterprise, to launch a digital product-line, ensuring unmatched customer-care and convenience,” he maintained.
Deployment of innovative solutions, like digital portals and applications, new products, health-app, policyholders-app, e-office management system and automated complaint management system, had transformed the company, he said.
“This way, the corporation is pursuing operational excellence, complete regulatory-compliance and transparency,” he added.
“SLIC’s conventional share in the business is 65% and 56% in conventional plus Takaful business with a total growth rate of 36%.”
Jubilee Life Insurance growth rate is 6%; 15% in conventional business and 34% in Takaful business. While, EFU Life growth rate is 15%, including 12% in conventional and 20% in Takaful business, according to the data gathered by Insurance Association of Pakistan (IAP).
Adamjee Life witnessed a growth of 21%, including 7% conventional and 11% Takaful. Pak-Qatar saw a 25% growth hike with 26% in Takaful, as per IAP.
In new businesses, SLIC reported earnings of Rs71.78 billion in 2021, 100% growth. The company paid a cash dividend of Rs1.7 billion – 13% growth in the year. The previous year’s figure was Rs35.91 billion.
Published in The Express Tribune, May 29th, 2022.
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