A round table of microinsurance experts organized by the Securities and Exchange Commission of Pakistan (SECP) and the US-based Center for International Private Enterprise (CIPE) came together recently to address issues, such as frequent claims against existing microinsurance plans and high administrative costs, that are preventing the expansion of microinsurance in Pakistan. According to the Express Tribune, a Pakistani affiliate of the US-based New York Times newspaper, there are approximately 4 million microinsurance policy holders in Pakistan, most of whom live in the northern region of the country. But the high administrative costs associated with providing these services have proven to be unsustainable for the insurance providers.
The roundtable brought together experts from insurance companies, banks and nongovernmental organizations (NGOs), all of whom helped draft the SECP Micro Insurance Rules 2011. No draft is available for review, however the document is said to stress increased use of technology, a reconsideration of administrative fees and getting more healthcare providers involved in the industry [1].
By Diana Baide, Research Assistant
[1] The Express Tribune. “Microinsurance: Draft regulations unveiled” by Mobin Nasir, 14 January 2011
http://tribune.com.pk/story/103436/microinsurance-draft-regulations-unveiled/
MicroCapital. “MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Aims to Ensure Sustainable Development of Microfinance Industry” by Trevor Kwong, 17 November 2010
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