‘Pakistan has enormous potential in insurance sector’

SLIC chairman says company provided life coverage to over 140m people

To cater to the modern-day needs of policyholders, State Life Insurance Corporation (SLIC) of Pakistan Chairman Shoaib Javed Hussain said that the company has launched an innovative ‘golden endowment plan’ as part of its golden jubilee celebrations.

In an interview with Minute Mirror on Saturday, he said, “The year 2021 was a historic year in the history of SLIC as it achieved a 100 percent increase in new business and earned Rs71.78 billion.” He added that this huge profit shows public trust and confidence in SLIC and its products for which they were bringing more innovation.

Hussain said that SLIC is always committed to protecting its policyholders through its valuable products. “SLIC doesn’t have competition with any other insurance company but it is struggling toward the provision of benefits to its customers,” he said, adding that Pakistan had a huge potential in the insurance sector and SLIC was focused to get maximum benefits from it.

He said that the SLIC was the only insurer in the country that achieved an AAA+ PACRA rating despite the challenges of the financial situation amidst the pandemic and inflation. “During last year, we paid highest ever claims of Rs98.3 billion and Rs85.65 billion bonus to our policyholders,” he said, adding that SLIC is a profit-sharing company and it disbursed 97 percent of profit in terms of bonuses to its policyholders.

“SLIC provided life coverage to over 140 million people, achieved 65 percent market share of conventional life and 57 percent of the share after inclusion of takaful. It is also contributing more than 50 percent premium to Pakistan’s total life insurance industry premium,” he continued.

“After growth of 36 percent, its total premium has reached up to Rs161.79 billion, and with a 13 percent growth, the cash dividend amounted to Rs1.7 billion. Its health business growth has reached 130 percent and 230 percent in group and pension business,” he informed.

Hussain said that the milestone of the previous year’s achievement could be attributed to its planning and research wing — which was introduced last year and helped to understand the market and people’s needs.

“Following its tradition of innovation and to facilitate Pakistanis in a better way, SLIC has now launched the golden endowment plan (GEP) under which policyholders will have to pay for seven years to get the benefit of 20 years,” he said. “Short-term savings can be used to provide the funding for the first seven years while availing full benefits for the 20 years of the policy which includes death along with survival benefits with higher returns and tax benefits.”

On a question of why one should purchase this plan, Hussain said that because under this plan, there was no requirement of paying premiums for the entire term of the policy. “GEP was a comprehensive limited premium payment term plan that offered enhanced financial benefits. Everyone between 20-55 years could buy this GEP to avail extensive protection and long-term benefits,” he added.

Samiullah Randhawa is a correspondent covering environment, climate change, food, water and ecology. He is an International Center For Journalists alumnus and a fellow at Kettering Foundation Ohio, USA. He has won two Agahi Awards for reporting on climate change and water crisis. He tweets @sami_randhawa and can be reached at samiullahfarid@gmail.com.