AIRLINK 78.39 Increased By ▲ 5.39 (7.38%)
BOP 5.34 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.33 Increased By ▲ 0.02 (0.46%)
DFML 30.87 Increased By ▲ 2.32 (8.13%)
DGKC 78.51 Increased By ▲ 4.22 (5.68%)
FCCL 20.58 Increased By ▲ 0.23 (1.13%)
FFBL 32.30 Increased By ▲ 1.40 (4.53%)
FFL 10.22 Increased By ▲ 0.16 (1.59%)
GGL 10.29 Decreased By ▼ -0.10 (-0.96%)
HBL 118.50 Increased By ▲ 2.53 (2.18%)
HUBC 135.10 Increased By ▲ 2.90 (2.19%)
HUMNL 6.87 Increased By ▲ 0.19 (2.84%)
KEL 4.17 Increased By ▲ 0.14 (3.47%)
KOSM 4.73 Increased By ▲ 0.13 (2.83%)
MLCF 38.67 Increased By ▲ 0.13 (0.34%)
OGDC 134.85 Increased By ▲ 1.00 (0.75%)
PAEL 23.40 Decreased By ▼ -0.43 (-1.8%)
PIAA 26.64 Decreased By ▼ -0.49 (-1.81%)
PIBTL 7.02 Increased By ▲ 0.26 (3.85%)
PPL 113.45 Increased By ▲ 0.65 (0.58%)
PRL 27.73 Decreased By ▼ -0.43 (-1.53%)
PTC 14.60 Decreased By ▼ -0.29 (-1.95%)
SEARL 56.50 Increased By ▲ 0.08 (0.14%)
SNGP 66.30 Increased By ▲ 0.50 (0.76%)
SSGC 10.94 Decreased By ▼ -0.07 (-0.64%)
TELE 9.15 Increased By ▲ 0.13 (1.44%)
TPLP 11.67 Decreased By ▼ -0.23 (-1.93%)
TRG 71.43 Increased By ▲ 2.33 (3.37%)
UNITY 24.51 Increased By ▲ 0.80 (3.37%)
WTL 1.33 No Change ▼ 0.00 (0%)
BR100 7,493 No Change 0 (0%)
BR30 24,558 No Change 0 (0%)
KSE100 72,052 No Change 0 (0%)
KSE30 23,808 No Change 0 (0%)

ISLAMABAD: The flourishing Takaful segment in Pakistan has generated total revenue of Rs62 billion in 2023, representing an 11% growth over the previous year.

The SECP Commissioner Insurance, Aamir Khan, emphasized the significant transition of Pakistan’s financial system towards Shariah compliance. This shift, aligned with the cultural and religious values of the people, is expected to provide a significant boost to Takaful in Pakistan, as indicated by the recent decision of the Federal Shariah Court of Pakistan.

Khan was speaking at the 6th Annual IIAL Conference 2023, organized by the Islamic Insurance Association of London (IIAL).

During his online keynote address, Khan pointed out the increasing potential for Islamic financial systems, citing the growth of Islamic assets in Pakistan. Khan further highlighted the flourishing Takaful segment, generating a total revenue of Rs62 billion, representing an 11% growth over the previous year.

Khan outlined the five-year strategic plan proposed by the SECP for the insurance sector in Pakistan, with the aim of raising the insurance penetration rate from 0.87% to 1.5% of the GDP. In the Takaful sector, the goal is to increase its contribution to 30% of the total insurance sector. A key focus of this plan is digital transformation, aiming to target a digital distribution channel market share exceeding 5%.

Pointing out challenges faced by the Takaful sector, Khan highlighted several issues, including the need for re-takaful support due to the transition towards the Islamic financial system, insufficient underwriting expertise, the impact of climate change, and limited awareness.

In conclusion, Khan emphasized that addressing these challenges requires knowledge sharing. He proposed collaboration between the London market, renowned for insurance and reinsurance expertise, and the Takaful sector in Pakistan, facilitated by SECP. Such collaboration, he believes, can lead to the transfer of knowledge, supporting Takaful companies in developing underwriting capacity for specialized and emerging risks through innovative product solutions.

Copyright Business Recorder, 2023

Comments

Comments are closed.