BOOMING INSURANCE BUSINESS
SIGNIFICANTLY SUPPORTING SOCIOECONOMIC DEVELOPMENT.
Apr 30 - May 6, 2012
Shahid Aziz Siddiqui, Chairman State Life Insurance Corporation (SLIC), has said that State Life is one of those public sector organizations which are not a burden on the national exchequer. In fact, State Life is playing a pivotal role in providing financial protection to millions of families through life insurance.
At the conclusion of SLIC Convention 2012, he said that State Life is playing its due role of social responsibility towards health and education at the grass root level while contributing significantly in the government plans for poverty reduction in the society.
In this respect, it was supporting government's social program "Benazir Income Support Program" and has provided Rs1,00,000 (one lac) as group insurance to hundred thousands of families. A pilot project had already initiated in Faisalabad providing 'Health Insurance' to approximately 44,000 families.
Under this scheme, people will avail up to Rs25,000 of health cover annually. Mr. Siddiqui informed the media persons that Renewal Premium also touched the figure of Rs24.78 billion showing an increase of 27 per cent.
The marketing force of State Life has also extended financial protection to 728,449 new families nationwide during the year 2011. The number of policy holders expanded to 7.5 million. Chairman State Life also informed that Corporation's Life Fund, which is the key indicator of its financial stability, has now reached to Rs.269 billion.
Replying to a question, Mr. Siddiqui said that State Life was planning to launch some new life insurance plans, so that people could invest their small savings in the life insurance policies; new plan naming 'Committee Policy' has already been launched for those looking for the short term investment. The work is also in progress in Bancassurance and Takaful.
In fact, the State Life is a very sound and stable financial institution, which is also evident by the fact that it has assigned "AAA" rating by PACRA (Pakistan Credit Rating Agency) consecutively for the last three years.
State Life Insurance Corporation of Pakistan till the first quarter of 2012 paid total amount of Rs2.732 billion against all claims, thus providing the cover for 17,278 families, out of which Rs0.394 billion was paid as death claims to 1,909 families of policyholders and Rs2.338 billion as maturity claims to 15,369 policyholders.
While in the year 2011, State Life also paid Rs8.597 billion on account of claims thus providing financial protection and savings to thousands of valued policyholders and their families nationwide.
The insurance company successfully secured Rs2.471 billion as first year premium (new business) during the 1st quarter of 2012 showing an increase of 15.74 per cent while in the year 2011, the corporation secured record first year premium of Rs12 billion showing an unprecedented increase of 25 per cent. The business in Gulf region is also improved and in the year 2011 it procured new premium of around US$4.3 million showing 21.5 per cent increase over the previous year.
Replying to a question, chairman State Life said that corporations investment portfolio is also progressing and in the year 2011 the investment income reached to Rs30.282 billion, showing an increase of 10.28 per cent.
The investment income till the Q12012 stood at Rs8.366 billion showing an increase of 12.15 per cent. He said that State Life is one of the largest real estate owners of the country.
It has wisely invested the policyholder's money in sound real estate projects. This not only provides earnings to the corporation in shape of rent but also provides space for its offices throughout Pakistan.
In the year 2011, it secured Rs730 million as net income from its real estate operations. The management has also launched construction projects of State Life buildings at Sargodha, Sialkot, and Rahim Yar Khan to provide quality space for business promotion in these cities. This is in addition to the 18-floor under construction Islamabad Towers.
Mr. Siddiqi, while speaking about the performance of marketing, group and pensions, said the group life side in the 1st Quarter of 2012 secured new premium of Rs1.150 billion from 1290 groups while in the year 2011 it secured Rs4.971 billion premium.
He further said that till Q12012 in individual life business State Life's all four regions showed exemplary performance. Multan, Central, Southern and Northern Regions showed a record increase of 14.67, 17.18, 10.76, and 19.33 per cent in business improvement respectively.
Chairman SLIC said that a strategy is being chalked out to redress the policyholder's grievances. However, he said, that there is a sharp decline in the complaints from the policyholders and their families.
Responding to a media query, he said that payment of claims are being made promptly as per rules. However, complaints are delayed only due to the non-submission of necessary policy documents by the policyholders and their beneficiaries while lodging claims.
He appreciated the marketing force and top business leaders on securing their business targets in 2011 and stress that better services be provided to the valued policyholders.