KARACHI:
Recently, Finance Minister Dr Shamshad Akhtar emphasised the need to enhance competition in the insurance sector by providing a ‘level playing field’ to private-sector operators. SLIC holds more public confidence than any other private insurance company. Therefore, I would like to request the government not to privatise SLIC as it is not a financially distressed unit and provides excellent services. It has significant penetration and a positive reputation among the public.
Due to a lack of awareness and certain factors, which appear to stem from structural rigidities within the country’s insurance sector, there is a pressing need for financial literacy among the masses. This is particularly crucial in rural areas. Introducing and developing more insurance products could help overcome these challenges and convince not only urban but also rural populations. The provincial government has recently introduced crop insurance offering coverage for climate change-related risks such as floods. Initiatives like these will provide valuable support to farmers.
The commencement of livestock insurance indicates a positive development for the livestock business in the country. Typically, life insurance policies offer extended coverage periods with lower premiums. However, people are hesitant to acquire life insurance due to the extended commitment. There is a need to persuade them to consider life insurance for their families and children emphasising lower premiums and long-term benefits. To attract more individuals to life insurance coverage, the policy period could begin at 10 years. This approach allows individuals to witness the benefits during their lifetime rather than afterwards potentially encouraging greater participation.
Khawaja Tajammul
Karachi
Published in The Express Tribune, December 17th, 2023.
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