SECP approves new life insurance product

It is equipped with features like artificial intelligence, data analytics

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved a new life insurance product, which is equipped with insurance technology features such as artificial intelligence and data analytics.

“The product has been introduced by an insurance company in partnership with an international technology service provider. The commodity is the first of its kind in Pakistan,” said a statement issued by the SECP on Tuesday.

Through this unit-linked product, the insurance company will be able to track health condition of its policyholders in respect to predetermined indicators, ie heart condition, cholesterol level, glucose level, etc, and provide reward points to the policyholders on the achievement of periodic targets.

The client can also receive integrated benefits, such as the credit of premium percentage into his investment account on the achievement of certain pre-set targets.

The commodity is the classic duplet of digital innovation and is an improvement in customer experience. The system that enables technological features of this product is powered by an international service provider.

The SECP said its approval of the product was a clear indication of its support for financial technology and innovative initiatives. Recently, a workshop on insurtech (insurance technology) was also organised by the SECP, which was attended by stakeholders from diverse backgrounds including insurers, brokers, banks, digital aggregators, non-bank finance companies, the association of microfinance institutions and nano-credit providers.

The product will help the insurer work on the “wellness approach” by improving the lifestyle and overall health of people by incentivising them through the use of data analytics and artificial intelligence.

It is expected to instill healthy lifestyle into the lives of persons covered and improve their overall health, thereby reducing the risks of chronic diseases, through the use of a technology-based platform.

Published in The Express Tribune, November 21^st, 2018.

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