NA body supports PPP mode for affordable insurance, sustainable relief programmes

ISLAMABAD: The National Assembly Standing Committee has advocated Public Private Partnership (PPP) for affordable insurance and sustainable relief programmes for the people.

The committee headed by Muhammad Jawed Hanif Khan floated this proposal in its meeting on Friday. The meeting focused on pivotal reforms within Pakistan’s National Insurance Company Limited (NICL) and Pakistan Reinsurance Company Limited (PAKRe), with an emphasis on strengthening their role in the private sector and expanding public relief efforts.

The Committee reviewed NICL’s strategic plans to amend its legal framework, enabling the corporation to broaden its services and provide greater benefits to the public. The CEO of NICL provided insights into the company’s solid financial standing, including its retained earnings and the ability to contribute dividends to the government. In light of this, the Committee stressed the importance of NICL’s expansion into the private sector to bring more affordable and accessible insurance products to the general public.

Similarly, the Pakistan Reinsurance Company Limited highlighted its significant progress in underwriting profits and a strong investment portfolio, while also emphasizing the need for enhanced private sector participation to foster competition and innovation in the reinsurance industry. The Committee discussed how these reforms could ultimately lead to more efficient services and better coverage for the public, particularly in climate risk and health insurance.

The Chair also advocated for the expansion of public-private partnerships (PPPs), suggesting that these partnerships could be key to addressing the nation’s growing need for affordable insurance and sustainable relief programs. The Committee members agreed that collaboration between the state and private companies will ensure better services and more accessible relief for the general public, especially in times of crisis.

As discussions continue, the committee expressed commitment to pursuing reforms that not only support growth of NICL and Pakistan Reinsurance Company Limited but also contribute to a more inclusive and relief-oriented insurance framework for Pakistan’s citizens.

The meeting was attended by MNAs, Farhan Chishti, Gul Asghar Khan, Tahira Aurangzeb, Kiran Haider in person whereas, Dr Mirza Ikhtiar Baig, attended the meeting virtually. Minister for Commerce and other senior officers from the Ministry of Commerce, NICL and Pakistan Reinsurance Company Limited were also present in the meeting.

Copyright Business Recorder, 2024