Pakistan: Financial regulator recommends mandatory health insurance
Source: Asia Insurance Review | Jul 2019
The Securities and Exchange of Pakistan (SECP), which oversees the insurance industry among other financial services, has recommended that the federal government introduce mandatory health insurance for private sector employees. The move will enhance financial inclusion in Pakistan by making insurance accessible to workers who have currently no health insurance.
This recommendation is aimed at covering full-time workers, including permanent, contract, and temporary workers and their dependents, reported The News International quoting the SECP.
The cost of the scheme is nominal and will be borne by employers. The hospitalisation benefit for each employee and their dependents is proposed to be provided on a cashless basis for network hospitals and on a reimbursement basis in the case of other hospitals.
An indication of the challenge faced is that Pakistan has a population exceeding 200m, representing the 10th largest workforce in the world. Over two-thirds of the workforce is engaged in informal work. A