Business Policy Roundtable: Microinsurance has huge potential economic impact on target community: speakers

The participants at a Business Policy Roundtable said that the Microinsurance, currently untapped market, has huge potential economic impact on the target community. The Business Policy Roundtable on Microinsurance Development was organised by Securities and Exchange Commission of Pakistan (SECP) in collaboration with Centre for International Private Enterprise (CIPE) at a local hotel on Thursday.
Nasreen Rashid, Executive Director (Insurance) SECP in her presentation on the first Draft Framework of Microinsurance Rules said that the SECP being the apex regulator of the insurance industry is cognisant of its responsibilities for developing the Microinsurance industry and is now looking at ways to break the silence and take some fundamental steps to cultivate this segment.
A task Force was set up for this purpose comprising major stakeholders including representatives from SECP, State Bank of Pakistan (SBP), insurance companies, microfinance banks, Insurance Association of Pakistan, Pakistan Microfinance Network and supported by the CIPE.
Ensuing to the work done by the task force, this roundtable was organised aimed at inviting comments from the broader segment of stakeholders on the draft regulatory framework for Microinsurance in Pakistan and working structure for the proposed Microinsurance Pilot Project. The Draft of Securities and Exchange Commission (Microinsurance) Rules, 2011 was discussed in detail and the participants gave their comments and suggestions over the various clauses. Nasreen Rashid said that it is the first draft of Microinsurance Rules and asked all the stakeholders to give their comments and suggestions on the same.
She thanked for an active participation of all stakeholders and said that SECP wants to adopt a successful model for this project with the consultation of all market players. Moin Fudda, the Country Director, CIPE said on this occasion that in the past five years CIPE has supported over 10 major policy advocacy initiatives in Pakistan that include Microfinance regulations, funding regulations for IT sector, Venture capital regulations, etc.
He said Microinsurance, which currently is an untapped market, CIPE is delighted to be technical partner with Insurance Association of Pakistan and SECP in bringing together over 50 stakeholders to discuss the draft regulations which once notified will change the way insurance has been marketed in Pakistan.
Dr M Mehdi Kazmi, Chief Executive Officer, Asia Care Insurance gave a detailed presentation on the proposed Microinsurance Pilot Project, a draft model prepared by insurance companies and distributors. He said lot of work has been done and this pilot project is expected to be launched by June 2011. The participants observed that the biggest challenges for the insurance sector in Pakistan are marketing innovation and technology up-gradation.