Importance of life insurance highlighted

The Express Tribune has launched a podcast series to create awareness among public about insurance, its various types, and why it is important in today's world.

The first episode of the series, which was livestreamed on the Facebook page of The Express Tribune, discussed insurance, its benefits, and the myths surrounding it.

The podcast was moderated by Erum Khaja, while Shan Rabbani, Group Head, Strategy at Jubilee Life Insurance, was the guest speaker.

Khaja emphasised on the role and importance of insurance in the common man's life, why there is a low footfall of insurance in Pakistan, and why our economic culture is all about spending and not saving.

Sharing figures from the Security and Exchange Commission Pakistan's last year report, she underlined that Pakistan has seen 22 per cent growth in the insurance sector whereas claims have also increased from Rs170 billion to Rs189 billion.

She also mentioned that Pakistan has 10 million active policyholders.

Insurance footfall in Pakistan is very low, i.e. 0.9 per cent of GDP, while internationally it is 3.5 per cent.

Rabbani informed that the insurance sector has seen growth in the last 10-15 years where life insurance has gone into double digits but we also need to see other factors as well such as the young demographic of the country, technological adaption, and social and religious factors that play a major role in insurance footfall.

"After 2008 when we were allowed to introduce the Takaful options, the numbers went up.

 Even today, many customers prefer to buy only those products that have the Takaful options," he said, adding that marketing has also played its role in educating the masses and explaining the process in depth.