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• There has been a consistent decline in the number of life insurance companies mainly due to limited demand for life insurance on account of small urban market and presence of state-owned corporation, which enjoys almost a complete monopoly in the market and thus leaves very little share for other companies.

• Pakistan’s public healthcare system faces challenges in the form of rural-urban disparities in healthcare delivery, an insufficient number of doctors, nurses, medical technicians, and limited choice in terms of physician practitioners.

• Health insurers are also partnering with organizations outside the segment to offer health insurance plans to customers in order to increase their market share.

Personal Accident and Health Insurance in Pakistan, Key Trends and Opportunities to 2022 which provides detailed information on the market trends in the Insurance market. In addition, report is a comprehensive report, providing detailed analysis of the market trends, drivers, challenges in the Pakistani personal accident and health insurance segment. In addition, it provides insight regarding major players in the industry.

The insurance industry in Pakistan is relatively small compared to other developing countries in the region. The insurance penetration and density remained very modest as compared to other jurisdictions while the insurance sector remained underdeveloped relative to its potential. Since, there has been a consistent decline in the number of life insurance companies mainly due to limited demand for life insurance on account of small urban market and presence of state-owned corporation, which enjoys almost a complete monopoly in the market and thus leaves very little share for other companies.

Additionally, Pakistan has quite low GDP per capita, low literacy rate and low women participation and empowerment in society, which further indicates low purchasing power and thus indicates that total population is living below poverty line.Hence,all these factors have contributed towards low share of Pakistan insurance industry in the world market. Pakistan’s public healthcare system faces challenges in the form of rural-urban disparities in healthcare delivery, an insufficient number of doctors, nurses, medical technicians, and limited choice in terms of physician practitioners

Almost 97% of Pakistan’s population is Muslim and the reason behind the low insurance penetration rate in this country is that insurance is regarded as unethical from a religious point of view by a large segment of people. Therefore, the government of Pakistan has been actively involved in promoting Islamic Insurance (Takaful) over the last few years. The Insurance Department of the Securities and Exchange Commission of Pakistan (SECP), the regulatory body for insurance, introduced Takaful rules in 2005 to regulate operations of Takaful insurance companies; the act also allows conventional insurance companies to transform into Takaful-based companies.

Initially, Pakistan was slow to respond to the global Takaful trend but, within a brief period, five Takaful companies (two general and three families) were established, and more companies are scheduled to enter the market in the near future. Foreign investors, particularly from Gulf countries, are heavily investing in Pakistan’s Takaful industry. Actuaries in Pakistan are increasingly in demand from Takaful companies to employ their analytical skills to this new industry. Health insurers are also partnering with organizations outside the segment to offer health insurance plans to customers in order to increase their market share.

In addition to underwriting profits, Pakistani personal accident and health insurance insurers are focusing on generating returns on investments, aided by improving economic conditions. Since in developing countries (most of which have large Muslim populations) like Pakistan, insurance is not being made available compulsory where it is needed the most, where human well-being is at the lowest and vulnerability is at its highest.

Moreover, in Pakistan insurance companies act as financial intermediaries and it has shown strong resilience to a challenging macroeconomic environment and global development. Since the insurance sector plays an important role in the service-based economy and its services are now being integrated into wider financial industry

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