STATE LIFE - SYMBOL OF FINANCIAL PROTECTION AND SECURITY
Departmental Head Advertising & PR
Nov 19 - 25, 2007
The importance of life insurance in today's life can not be under estimated. The primary purpose of life assurance is to provide money to meet financial losses caused by death, disability and illnesses. Mainly there are two basic elements of life assurance i.e. protection and investment. As for protection it provides income and security for dependents after the death of the life assured while investment resorts to the creation of capital from regular savings.
As the nation's largest life insurance organization State Life with its largest market network and geographic presence across the country is successfully providing financial services and protection to millions of valued policyholders and their families nationwide by marketing life insurance policies and plans that are guaranteed by the Government. Some of the popular life assurance policies that State Life sells include Child Education and Marriage Plan, Three Payment Plan, Jeevan Sathi Plan, Shadabad Plan, Personal Pension Scheme, Whole Life Endowment Plan, Sunehri Policy, Shehnai Policy and recently introduced Sada Bahar Plan.
To briefly elaborate plans' unique features, State Life's Child Education and Marriage Plan is a saving plan which can help meet the education, marriage and future needs of the children. The Three Payment Plan is a unique endowment assurance because it provides an option to avail the benefits of 25% withdrawal of the sum assured on the completion of one-third and two-third term of the policy. The family plays a vital role in our society. The prosperity of our society depends on the prosperity of the family. For the well being and protection of the family, State Life has designed a policy on the lives of husband and wife which is named as Jeevan Sathi Plan. This policy ensures financial protection and secures future of married couples, as well as business partners. The plan's target market is married couples, business partners who are financially dependent on each other. Shadabad, this plan will meet the requirements of those who appreciate the basic savings purpose of endowment assurance and the accrued bonuses/terminal bonuses. The plan is suitable for professionals like doctors, engineers, advocates, businessmen, employees, teachers and the newly-wedded couples. For the retirees, State Life has personal pension scheme that gives a life time security for the self and for almost one generation of the family. The employee will have to provide for his or her own retirement income. State Life's Whole Life Assurance is yet another addition to the existing life assurance policies that it offers to the general public. The Unique selling feature of Whole Life Assurance is that it gives maximum financial protection and risk cover at minimum premium. Sunehri Policy is unique offering by State Life it offers protection hedge against inflation. At the end of policy term the Sunehri Policy, provides attractive financial returns. State Life's Endowment Policy offers protection and savings for the future of the family dependents, it is a vital instrument to financially secure one's family. State Life's Shehnai Policy is an innovative life insurance product. It provides a solution to the problems of many concerned parents who want to save now in order to provide for their children's higher education, marriage and other expenses when the need arises. The terms of the plan is such that a lump sum benefit becomes payable as a child attains the age of 25 years. All the said State Life plans attach great bonuses and other benefits which are disbursed as the policy is matured or in case of death.
State Life has showed the robust business performance uptill the 3rd Quarter of 2007. The First Year Premium (New Business) stood at Rs.2.26 billion by insuring 194,354 new policyholders and their families nationwide uptill Q3, 2007. State Life's Renewal Premium stood at Rs.6 billion, while the second and third year persistency stood at 69.10% and 99.10% respectively. Region wise Central Region topped by securing Rs.774 million followed by North Region Rs.608 million, South Region 471 million and Multan Region Rs.413 million by showing an increase of 22.82%, 14.70%, 12.61% and 31% respectively. During the year 2006 State Life had procured Rs.3.17 billion as First Year Premium (New Business) by ensuring 2,82,795 new policyholders and their families nationwide while the Renewal Premium stood at 8.50 billion and Second & Third Year Persistency stood at 82.49% and 88.28% respectively.
Based on the actuarial valuation State Life distribute 97.5% of its surplus as bonuses to its valued policyholders while the 2.5% goes to the Government of Pakistan. These Bonuses are declared on yearly basis. As per the actuarial valuation of 2006, State Life has allocated Rs.8.44 billion towards the bonuses on with profit policies. The bonuses are based for the policies in force for full sum assured as at 31st December 2006. As per the actuarial valuation as at 31st December 2006 the reversionary bonuses per thousand sum assured per annum for Whole Life Endowments has been enhanced to Rs.60 for first five policy years as compared to Rs.56 for the same period in 2005, while reversionary bonus form 6th policy year to 16 policy year the new bonus rates will be Rs.l 10/- and for 17th policy year onward, the new reversionary bonus rates will be Rs. 1507- per thousand sum assured per annum.
The Life Fund of State Life stood at Rs.l37 billion and the Investment Portfolio at Rs.l42 billion, while the investment income stood at Rs.15 billion as at 31st December 2006. State Life remains the nation's largest Real Estate holder, whose market value stood at 21 billion rupees. State Life leads its way by effectively providing the quality financial services to its 6.09 million valued policyholders, 2.18 million individual life and 3.91 million group-life policyholders. Since its inception in 1972 till to date State Life had paid billions of rupees on account of maturity and death claims that had benefited millions of policyholders and their families both in the individual and group life. State Life has paid Rs.3.54 billion on account claims both death/maturity that has benefited 34215 policyholders and their families nationwide during the period 2006. During the first half of 2007 State Life had paid Rs.2.82 billion on account of death and maturity claims that benefited to 26596 valued policyholders and their families nationwide. While on the group life side State Life has paid Rs.l.17 billion for 7017 cases. State Life's paid-up capital is Rs.900million which is highest in the life insurance industry.
In a bid to provide better quality services to its valued policyholders with diverse range of product line, State Life has taken a leap forward by computerization drive throughout its twenty six zonal offices that are now well equipped with state-of-the-art networking to ensure optimum facilities to the existing and prospective policyholders. An interactive web-site www.statellfe.com.pk is redesigned and developed, is an effective marketing tool which provides the wide range of information on the corporate structure of State Life, products, plans, policies, services, human resources, real estate and investment portfolio etc.
To help support the marketing force various advertising campaigns on product and corporate image building are released in the print and electronic media. As an area that cannot be ignored, State Life has taken a leap forward for the promotion of Arts, literature and diverse culture of the country. The literary works of the intellectual writers, poets, artists are well supported through various promotional means.
The four pillars of marketing i.e. product, price, place and promotion forms the core marketing philosophy at State Life. Presently there are 26 Zonal Offices and four Regional Offices located geographically besides the Gulf Zone in the Middle East located atDubai, UAE.
The North, Central, Multan and South regions are fully operative and well netted with the 40,000 actively trained marketing force under the Executive Director (Marketing) and (Group & Pensions) Ms. Nargis Ghaloo, are committed to the excellence of procuring quality business and constantly involved in providing after sales services to the policyholders at their door steps.
Product research is an ongoing area at State Life which is manifested in the innovative solutions to continue product development. In a bid to provide value added life insurance plans and policies to its prospective and millions of existing valued policyholders, State Life aims to launch new saving friendly products in the near future.
The Government of Pakistan had announced the "Insurance Policy" in April 2007 which is in process and envisages vast measures to liberalize the life insurance sector that include floating State Life shares through three stock exchanges of the country converting "State Life Insurance Corporation of Pakistan" into "private Ltd Company," while the management control would be retained with the Federal Government, introducing Takaful Insurance, the Islamic mode of providing the financial protection and security, spreading the life insurance cover to the rural areas and converting Pakistan Insurance Institute (PII) into Pakistan College of Insurance and Takaful (PC1T).
As a market leader in life insurance industry State Life has the ability to deliver the financial services. The prudent investment initiatives of Mr. Kamal Afsar, Chairman, State Life has resulted in better returns to its millions of valued policy holders in terms of "bonuses" that grows from year to year in billions of rupees. There is a greater need felt on the part of State Life's higher management to provide state-of-art training and groom its marketing force to create mass awareness about the benefits of life insurance with State Life so as to untap vast potential in life insurance market, ensure that optimum number of families across the country be provided the benefits and financial coverage of their hard earned money through life insurance that could ultimately raise the 'saving' ratio and contribute meaningfully to economic development of the country.