Last week’s International Insureimpact Conference 2023 organized by the SECP was unique in its focus on real issues and fostering open debate through a futuristic lens – a professionally executed event providing enlightening experience.
I had the honor of hosting a panel on “Microinsurance: Big Protection in Small Ticket.” Here are some key takeaways I wanted to share with my LinkedIn community:
💡In Pakistan, <50% of insurers, 5% of insurance brokers and 100% of telecom operators are currently engaged in hashtag#microinsurance and hashtag#inclusiveinsurance. While it’s encouraging to see telecom operators involved, this highlights the need for the insurance industry to step up its efforts.
💡An interesting revelation was that letting the market grow organically yields better results than relying solely on new regulations. The SECP’s recent study on micro and inclusive insurance revealed that, out of a total market of over 16 million, none of the products offered is registered under Microinsurance Rules 2014, emphasizing the advantage of a lighter regulatory oversight.
💡Micro and inclusive insurance is often viewed as not generating significant premium value; however, some large insurers with long-term view endorse the concept of this business and recognize it as a means to create an ecosystem. This not only brings in a new class of customers and premium income but also supports conventional business.
💡The growth of micro and inclusive insurance hinges on claims being settled quickly. This underscores the importance of efficiency in claims processing.
💡Insurance is an integral part of microfinance. We may not have evidence about market’s readiness to buy standalone insurance after several instances of benefiting from loan-linked insurance, yet the message is to keep doing that as repetition creates habits.
💡A customer-first approach is paramount. Including the target market in discussions and shifting toward a demand-side approach is crucial for the continued success of micro and inclusive insurance.
Let’s continue these discussions and collaborations for a more inclusive and sustainable future.
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Wazirzada Yasir almas KhanNilofer SohailPedro PinheiroIshaq KothawalaAli BasharatZain ul-Haq QureshiEFU Life Assurance Ltd.Insurance Development ForumWaadaPakistan Microfinance NetworkAsia Insurance Company LimitedInstaful Solutions
Photos courtesy: MOHAMMAD ALTAF MADRASWALA 🙏