News Analysis |
In Pakistan, like many countries with a lower literacy rate, awareness of the benefits of insurance policies is negligible and exists only amongst a relatively higher class. Since insurance is not only restricted to health and life policies, State Life Insurance, one of the foremost and oldest public insurance franchises in Pakistan, is contributing to the increasing annual growth of 30 to 35% (recorded during 2014-2016). In view of these changing market dynamics; State Life, launched a campaign to promote their ‘Education Continuation Scheme’ late last year.
A local publication quoted Razia Ramzan Dossa, Head of Corporate Communications, State Life, “this product has been a part of our group and pension schemes portfolio for a long time. The reason for launching this campaign now is to create awareness about how the product can minimize school dropout, if the family’s bread earner passes away.”
Mr. Mir congratulated the employees of the Corporation and commented that he is proud to be leading the only “AAA” rated life insurance Company in Pakistan with more than Rs. 101 billion gross premium received in 2017.
Coverage details of the event described that Iftikhar Ahmed, GM, Head of Group & Pension, State Life, added to the conjuncture that paying for quality education in Pakistan today is a challenge and several middle and upper-middle class parents are struggling to ensure that their children continue to receive such an education. Often in the event of the demise of a parent or a guardian, children are forced to drop out of the school or switch to more affordable options, the GM said.
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The campaign’s tagline ‘Iraadon Ki Kamiyabi’ (continue the promise of education) is the solution to a very deeply embedded root cause of illiteracy: the absence of guardianship and the subsequent abandonment of education. According to International Labor Organization, 19 Million children in Pakistan are working as child labors, which is a primary consequence of financial constraint in households (often the absence of guardianship).
The mechanism for the scheme is ingenious: audience for the scheme is owners, principals and heads of schools. The scheduling of the premium payments is the decision of the school and State Life tailors each policy according to the budget and needs of the institution. The premium is either paid in full by the school or shared (on an agreed-upon formula) with the parents. At the end of the year, if no losses have taken place, State Life offers policyholders two ways of using the accumulated premiums; it can either be used as a discount on the following year’s premiums or taken as a lump sum to be reinvested in the school’s development.
Insurance is not only restricted to health and life policies, State Life Insurance, one of the foremost and oldest public insurance franchises in Pakistan, is contributing to the increasing annual growth of 30 to 35%.
“In this way,” says Dossa, “the product has a customer service representation element built-in, whereby State Life is playing a role in either helping children continue their education, even after the demise of a parent, or help in furthering the development of the education system in Pakistan by giving school heads a mechanism to save and reinvest in the development of their schools, in the form of increased teacher compensation, infrastructure development or better security”, publications reported.
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Earlier this year, State Life Insurance Corporation held their 26th Annual Convention in Islamabad which was inaugurated by Mr. Shoaib Mir, Chairman of the Corporation. The Convention was organized to celebrate the achievement of record targets in life insurance business in Pakistan and commemorate the high achieving employees of State Life Insurance Corporation of Pakistan.
Mr. Mir congratulated the employees of the Corporation and commented that he is proud to be leading the only “AAA” rated life insurance Company in Pakistan with more than Rs. 101 billion gross premium received in 2017. He further said that the Corporation has paid more than Rs.44 billion claims and have provided financial protection to millions of valued policyholders and their families.
The Chairman also briefed; that Corporation’s total assets have reached 758 billion, whereas the life funds have reached 710 billion, which is the key indicator of its financial stability. State Life has 32 active Individual Life plans and 7 active Group Life products fulfilling the insurance, investment (long term and short term), saving and other needs of the people.