Daily Times

President Dr Arif Alvi Wednesday said due diligence and transparency in the bancassurance sector were vital to increasing the quantum of public investment, thereby strengthening the economy.

Attractive insurance and banking products would not only enhance public confidence in the bancassurance sector but also ensure increased liquidity in the economy, he said while addressing a conference on ‘Transparency in Bancassurance and Role of Ombudsman’ here at the Governor House. President Alvi said it was the state’s responsibility to provide a regulatory framework for growth and transparency in the banking and insurance industries. The insurance industry, he said, should improve checks and balances, and filtering mechanisms to conduct due diligence before the issuance of policies to policyholders, besides honouring claims in a timely and transparent manner.

He stressed the need of strengthening the insurance sector and enhancing its contribution to the gross domestic product. The share of the insurance sector in Pakistan’s economy was less than 1%, whereas in other regional countries, it was around 3%. President Alvi said the insurance sector could offer profitable products to the general public to attract their savings and support the economy simultaneously. He stressed that the money parked in the real estate sector should be shifted to other productive sectors of the economy to keep the wealth of the nation in circulation. New products like crop insurance and social insurance should be introduced in the wake of the current climatic situation, he suggested. Highlighting the significance of transparency, the president said accurate information about the insurance policies should be provided to the people at the time of selling the policy, which would enhance their confidence in the sector.

He further said the sales force of the insurance and banking sectors should adopt the best practices and fair play to win the trust of the clientele. Federal Insurance Ombudsman Khawar Jameel shed light on the performance and growth of his organisation. He said the monetary relief to the tune of Rs 2.57 billion had been provided to the complainants during the last year. “This has been achieved through an amicable dispute resolution and effective complaint redressal system at the Federal Insurance Ombudsman office,” he added. The event, organized by the Federal Insurance Ombudsman, was attended by Federal Banking Ombudsman Kamran Shahzad, Insurance Association of Pakistan Chairman Muhammad Hussain Hirji, and officials and representatives from the banking and insurance industries. Earlier, the president also distributed cheques among the complainants who had got their insurance disputes resolved through the Federal Insurance Ombudsman.