The insurance sector in Pakistan has not seen the same level of development as in other countries. While insurance plays a vital role in safeguarding assets and planning for the future in Western nations, its importance remains relatively low in Pakistan. The insurance industry is divided into two main categories: life insurance and non-life insurance. Life insurance covers health and life, whereas non-life insurance includes assets like vehicles, homes, buildings, factories, marine, travel etc.

Unfortunately, the adoption of insurance in Pakistan is alarmingly low, with only 0.91 percent of the population availing of insurance services, the lowest in the region. This article features an exclusive interview with Akif Zia Malik, HOD Business Solutions at TPL Insurance, sheds light on new innovations and common misconceptions in the insurance industry.

 Akif Zia Malik: from engineering to insurance

Akif Zia Malik, a mechanical engineer with over 20 years of experience, made a significant career shift when he joined the sales sector after completing his MBA. He has experience in the manufacturing industry as well as the services industry. Despite his engineering background, he remained involved in public dealings through sales departments, recognizing that every job ultimately involves salesmanship. Akif Malik is heading TPL’s Business Solutions & New Innovations department which is building the ethos of TPL Insurance to remain at the forefront of technology in the insurance sector.

TPL Insurance also has introduced Pakistan's first-ever insurance app, enabling individuals to buy retail insurance products and file claims anytime, anywhere, 24/7.

The Importance of insurance awareness 

Akif Zia Malik emphasizes the lack of insurance awareness among the Pakistani population as a major obstacle to its widespread adoption. Many people have limited knowledge about insurance, which hampers its promotion and sales. Certain non-life insurance policies, such as third-party vehicle insurance, are legally mandated by the government of Pakistan.

However, due to inadequate understanding, individuals often acquire substandard, inexpensive insurance policies from unreliable companies. This not only fails to protect the policyholder adequately but also leaves potential victims of accidents uncompensated. Furthermore, the government's lax implementation of these insurance requirements compounds the issue. He also mentioned that we don’t hear about thousands who have received their insurance claims, but we hear only about someone not receiving an insurance claim. 

TPL Insurance's contributions and innovations 

Akif Zia Malik shed light that TPL Insurance has taken notable strides to address the insurance gap in Pakistan. The company offers insurance services in the Agri sector including but not limited to Crop, Livestock, and Tractor and is now moving into mechanization assets like solar tube wells, harvesters, drip irrigation etc., which is a focus in the  Prime Minister's Kissan package. 

In 2008, the State Bank of Pakistan introduced the Crop Loss Insurance Scheme (CLIS), which at that time was groundbreaking, but now needs to be evolved. Under CLIS, claims can only be filed when the government declares a calamity. TPL Insurance launched Area Yield Index Insurance (AYII) under which payout is given when the yield fall below a certain level of the the government fixed yield per acre; thus, offering a revolutionary solution to farmers' financial challenges.

TPL Insurance piloted AYII with a couple of banks successfully provided compensation to approximately 50 farmers affected by heat wave in Sheikhupura through the Area Yield Index Insurance, disbursing a claim amount of approx. Rs 9.0 lakh. This was the 1st time in the history of Pakistan that farmers received compensation because of Heatwave.

Transforming the insurance landscape in Pakistan

In a groundbreaking move within the insurance industry in Pakistan, the TPL Insurance app has emerged as a revolutionary initiative that allows individuals to effortlessly obtain vehicle insurance, home insurance, motorcycle insurance, mobile insurance, health insurance, travel insurance, file claims, and access a multitude of services with just a single click. This technological advancement not only holds immense potential for the future of insurance in Pakistan but also carries the promise of dispelling misconceptions surrounding insurance, enabling individuals to protect their assets more effectively.

The advent of the TPL Insurance app marks a significant point in the insurance sector of Pakistan by making it easy for everyone to protect their assets. This innovative platform simplifies the otherwise complex process of obtaining insurance coverage by providing a user-friendly interface that streamlines the entire experience. With just a few taps on their mobile devices, individuals can now easily navigate through various insurance options, choose the coverage that suits their needs and complete the purchase seamlessly.

Moreover, the TPL Insurance app goes beyond the mere provision of insurance policies. It serves as acomprehensive platform, offering an array of additional services to its users. Through this app, individuals can efficiently file insurance claims, track the progress of their claims, and receive updates inreal time. This level of convenience and transparency empowers policyholders by placing them incontrol of their insurance journey, ensuring a smooth and hassle-free experience. One of the most significant benefits of the TPL Insurance app is its potential to reshape the public perception and eliminate misconceptions surrounding insurance in Pakistan.

Historically, insurance has been met with skepticism and uncertainty in the country. However, this revolutionary app has the capacity to bridge the gap between insurers and the public, fostering trust and understanding. By providing an accessible and user-friendly platform, the TPL Insurance app demystifies insurance, educates individuals about its significance and highlights its role in safeguarding their valuable assets.

The positive impact of the TPL Insurance app extends beyond its immediate users. As more individuals gain access to insurance coverage, the overall level of financial security and stability in Pakistan is expected to increase. With insurance protection readily available, individuals can confidently safeguard their property and investments, knowing that they have a reliable safety net in place.

In conclusion, the introduction of the TPL Insurance app has ushered in a new era for the insurance industry in Pakistan. This groundbreaking initiative not only simplifies the process of obtaining insurance but also acts as a catalyst for change by dispelling misconceptions and fostering trust among the public. As more people embrace the benefits of insurance through this user-friendly platform, the future of insurance in Pakistan looks brighter than ever before.