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Steps demanded in upcoming budget to boost insurance sector

Islamabad, May 25, 2021 : The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating (AA) of the United Insurance Company (UIC).

The UIC has shown stability and sustainability from the past couple of years it has a balanced portfolio representing all the segments of the insurance industry, it can withstand shocks and discharge obligations, the credit rating agency has observed.

The coronavirus has damaged many businesses but the UIC has endured the shocks and continue to perform in line with the expectations of the stakeholders and market, it said.

At the occasion, the CEO of United Insurance Company Mian M. A Shahid said that we are thankful for the rating and we will continue to improve to better serve policyholders.

He said that the pandemic is not only a health emergency but also a financial disaster resulting in heavy losses and bankruptcies not seen before.

Amid pandemic, the significance of insurance has been realized across the world therefore steps are needed to facilitate and strengthen this critical sector to safeguard masses and businesses during emergencies, he added.

Mian M. A Shahid said that the Government can consider measures in the upcoming budget to ease the insurance sector’s woes ensuring rapid development of insurance market which has a dismally low penetration in Pakistan.

Insurance is a capital-intensive sector, and insufficient capital has been a challenge facing insurers therefore steps are needed so that they can have enough capital for stoking the growth inline with their expectations.

The insurance sector occupies an important position in the growth and development of an economy, he said, adding that the significance of this sector has been realized and now steps are needed to change the face of insurance including a step to declare insurance an essential service.

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