SECP issues licence to non-life insurance firm

Sahara Insurance is wholly-owned subsidiary of EOBI.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a licence to Sahara Insurance Company Limited (SICL), a wholly-owned subsidiary of Employees Old-age Benefits Institution (EOBI), allowing it to conduct non-life insurance business in the country.

“With this move, it is anticipated that the health insurance sector in Pakistan will record visible growth, while improving insurance penetration and density figures that have remained one of the lowest in the region,” said the SECP in a press release on Wednesday.

It has been after a gap of four years that the SECP has given licence to an insurance company. Last time, it issued licence to an insurance firm was in 2009 and that was to a life insurer.

With continuing emphasis on social insurance, EOBI decided to incorporate SICL with the primary objective of providing health insurance coverage to EOBI pensioners aged between 60 and 70. In addition, accidental death and disability coverage will be provided to Pakistanis working abroad.

In case of health insurance, the premium will be funded by the Workers Welfare Fund whereas premiums for accidental death and disability insurance will be paid directly by expatriate Pakistani workers to SICL.

Following the registration of SICL, total number of active non-life insurers has reached 40 and total number of active insurance companies (life and non-life), including Pakistan Reinsurance Company, stands at 50.

Published in The Express Tribune, May 23^rd,  2013.

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