The Technical Committee on Insurance (TCI) of the National Financial Inclusion Strategy (NFIS) Steering Committee has made several proposals to advance the development of insurance in Pakistan.
The first recommendation involves introducing insurance education in the academic curriculum, in order to impart insurance awareness at the grassroots level, reported Business Recorder citing sources. In this regard, the key content/ outline of the insurance curriculum has been prepared by the TCI.
The curriculum will be incorporated in the syllabus of primary, secondary and higher education. The specialised task of curriculum development is proposed to be assigned to field experts. A proposal for funding the project, comprising consultancy charges, event management, travelling and media campaigns, has also been submitted to the NFIS Secretariat.
Another recommendation is to promote the use of vernacular language in insurance policies. The goal is to enable better understanding of insurance related terms for insurance policyholders and the general public. The NFIS has formulated the standardised insurance glossary for facilitating the usage of vernacular (Urdu) language in insurance policy documents and promotional/ marketing material. The glossary is uploaded on the SECP website and intimation has been sent to all insurers to refer to the glossary for preparing insurance policy documents and use in promotional/ marketing activities.
Rationalisation of Enhanced Due Diligence (EDD) requirement
A third proposal is to rationalise requirements for EDD for digitally distributed insurance. A directive for corporate insurance agents including mobile network operators has been drafted that stipulates the threshold for which the simplified Customer Due Diligence will be required for digitally distributed insurance policies. .
Compulsory Group Life Insurance
The TCI also notes that regardless of the fact that group life insurance is legally mandatory, a significant part of the labour force remains uninsured. The main reason for this is attributed to the restrictive applicability of law (that is, applicable to companies having more than 50 employees). The matter has been raised with the Ministry of Inter-Provincial Coordination.