How to develop insurance culture?
Insurance has not been given the importance it
By Atique Ahmed Chishti
July 02 - 08 , 2001
Role of the insurance industry in social and
economic development cannot be denied. Exploring new ways, making
innovations and doing business involve risks to man's life, goods and
property. Insurance provides financial protection. In case of loss, a
person recovers his financial position as before the incidence. Thus a
man takes big risks to make innovations keeping in view the insurance
support. In Pakistan insurance has made an immense contribution to the
development of the economy, progress and prosperity of the country.
Unfortunately, insurance has not been given the
importance it deserves. This is one of the neglected sectors in
Pakistan. The government's attention has repeatedly been drawn towards
problems being faced by the insurance industry. But all efforts have
gone in vain. It is evident from the treatment of the government with
the insurance sector. It is worth noting that in spite of this fact,
insurance companies have constantly been making a substantial
contribution towards the government's revenues.
The situation demands revolutionary steps to bring
about a positive change in the insurance industry. Pakistan being a
developing country can definitely be benefited with the development of
insurance culture. The following are suggestions for the development
of the insurance culture in Pakistan.
• To launch a collective movement to pressurize
the government for the inclusion of insurance as a subject in the
• To design our own syllabus and establish an examination system to
rid of dependence on foreign institutes. ;
• To force the government to spend sufficient funds on the insurance
industry especially on education in return for various charges, taxes
and fees they take from insurance companies.
• To restore all inactive insurance institutes as well as set up new
ones in line with the modern age aiming at producing highly skilled
professional man-power to meet the demands of the country.
• To open job avenues for new trained professionals.
• To create an atmosphere conducive to attract fresh and talented
• To bring out an insurance journal on a monthly basis by improving
its standards so as to keep the insurers abreast of the changes taking
place in the insurance sector all over the world.
• To set up a media cell with the task to create an awareness among
the general public about the importance of insurance through the
media, both printed and electronic.
• To launch a web site on the Internet showing complete information
about the insurance industry playing a significant role in the
• To introduce new insurance products especially in the area of
health by joining together some insurance companies to give service at
large to general public.
• To set up a monitoring cell provided with adequate powers to
control malpractices in the insurance sector and stop insurers
deviating from the right path.
• To hold regular seminars/conferences and training workshops in
order to provide the insurers with opportunities to develop
professional skills and upgrade their knowledge.
• To form an advisory council consisting of top executives as well
as retired professionals to give feedback to all insurers to do
business on the right lines.
• To strengthen the insurance industry to stand on its own feet
enabling it to solve more and more problems without seeking help from
• To explore new markets for the expansion of the insurance
• To develop coordination among the insurance related sectors to
share responsibility of preventing the increasing fraud in respect of
Insurance claim so that profitability can be enhanced.
• To focus on placing the insurance industry high in a competitive
market by providing the basic guidance to insurance companies to
acquire ISO 9000 standards essential for facing the challenges of
globalization in the new international environment.
• To create an independent credit rating agency for insurance
companies to be classified and rated according to their financial
position and service performance.
Only suggestions or forming rules do not serve the
purpose. A lot of suggestions on the promotion of the insurance sector
have already been made by the professional experts. The basic thing is
to make sure their implementation and continuity.