ISLAMABAD, Pakistan: Deputy Governor of the State Bank of Pakistan Saeed Ahmad has said that media had the responsibility to make the people aware of insurance industry.
“Seminars and training workshops are necessary to enhance the capacity of any professional including media to use these skills for the progress and stability of the country,” he said while addressing the “Journalist Capacity Building Workshop on Insurance,” conducted by Securities and Exchange Commission of Pakistan (SECP) here.
“We need proper assessment of the people in a bid to utilize best resources for the development and prosperity of the people,” he said.
While highlighting the different aspects of insurance Industry, he said the country’s insurance sector need more to compete with the developed world as well to face the challenges of regional insurance industry.
While talking on the occasion, Chairman SECP Zafar Hijazi stressed the need for training workshops for the capacity building of professionals in the country.
He said that a vibrant and well regulated insurance sector was the most lending force contribution towards economic and social progress of Pakistan.
During workshop the experts from SECP delivered lectures and highlighted the different aspects of insurance industry and the regulatory function of SECP in this regards.
The SECP officials also gave presentation on SECP’s regulations for insurance industry, the overall preview of the insurance industry in the country and about recent initiatives and reforms taken for the development of insurance industry.
Ali Azeem Akram, the head of Insurance Division of the SECP, informed the participants that in Pakistan the insurance premiums grew at the percentage of 15 percent over last five years.
In 2014, the cumulative premium of the industry was Rs131 billion for life insurance and Rs68 billion for non-life insurance.
He said the penetration of insurance was increasing in the country, but it was still very low as compared to other countries.
The penetration for life insurance is 0.51 percent whereas it is 0.26 for non-life insurance.
Insurance density, which is per capita expenditure on insurance measured as ratio of premium to population is 10.40, he told the participants.
The paid-up capital requirements, solvency requirements and statutory deposit requirements for insurance companies have been increased.
The SECP has constituted small dispute resolution committees for effective and efficient resolution of the complaints of the aggrieved policyholders.
Moreover, Ali Azeem said that in order to ensure improved corporate governance the SECP had recently introduced a Code of Corporate Governance for insurance industry.