ISLAMABAD: The government, in collaboration with insurance companies, expected to initiate inclusive insurance schemes which closely link to existing governmental protection programmes such as Benazir Income Support Programme (BISP).
The officials of the Securities and Exchange Commission of Pakistan (SECP) Tuesday shared with media a comprehensive report on unlocking the potential of micro and inclusive insurance in Pakistan.
The SECP recommended that integrating the element of health insurance into social protection programmes as done in the case of National Health Insurance Programme can enhance the value of these schemes, as a universal health coverage programme.
Embedding health insurance in social protection programmes will not only reduce the out-of-pocket health spending but also fulfil the state responsibility in ensuring access to health, SECP added. The collaboration with Mobile Network Operators (MNOs) and Microfinance Institutions (MFIs) is of paramount significance to support in expanding the reach and accessibility of micro-insurance/inclusive insurance to masses.
By partnering with MNOs, micro-insurance providers can leverage the extensive network and digital infrastructure these operators possess. This collaboration is expected to facilitate premium payments, claims processing, and policy management through mobile platforms, which may particularly be beneficial for customers in remote or underserved areas.
According, to International Labour Organization - Social Protection platform, only 9.2 percent of the population in Pakistan is covered by one social protection programme and 8.4 percent of the population is affiliated to another social health protection scheme. This leaves the insurance industry with a huge untapped market which is to be tapped in.
With majority of the population in Pakistan working in informal sector, inclusive insurance is recommended as the second-best solution, primarily where the government may not have the capacity to provide social protection to the persons working in the informal-sector, SECP added.
Copyright Business Recorder, 2024
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