the Financial Daily International Tuesday, Dec 23 2014 (An Introduction) Insurance is a risk transfer mechanism. Its a method of shifting the responsibility for losses to specialists (insurance companies) who handle the risk by spreading it over a large number of people or firms system of protection against loss IAP is a forum of active exchange on matters relating to insurance, to promote, support and protect common interests of member companies carrying on the business of insurance in Pakistan and to endeavor to increase insurance awareness and penetration in the country Its Chairman Mr. Tahir Ahmed, Managing Director & Chief Executive Officer, Jubilee General Insurance Company Limited (formerly New Jubilee Insurance) is a Metallurgical Engineer by profession; he holds MBA (IBA, Karachi) degree and is also an Associate of Chartered Insurance Institute (ACII), London Before 1947, there were three Insurance Associations in the subcontinent at Calcutta, Bombay and Madras; Bombay Association had a branch in Karachi. After the establishment of Pakistan, the Insurance Association of Pakistan was formed and inaugurated on 9th February, 1948. The Insurance Association of Pakistan is a forum for the exchange of information, knowledge, experience and statistics among its members. IAP, unlike other trade bodies provides a professional platform to guide the members in technical matters related to industry. The Insurance Association of Pakistan is recognized both at National level as well as International Level. The Insurance Association of Pakistan is recognized by the Ministry of Commerce as an All Pakistan Trade Association and is Member of the Federation of Pakistan Chambers of Commerce and Industry. The Association corresponds with the Fire Protection Association, London, the Association of Average Adjusters, London Association of British Insurers & the International Underwriters Association of London and it also receives valuable advices and guidance based on their world wide experience and connections. Individual Insurance Companies have friendly business connection with such world renowned reinsurers such as Swiss Re, Munich Re, Tokyo Marine etc. The Association subscribes to Pakistan Insurance Institute (PII) & Pakistan Institute of Corporate Governance (PICG) and provides Technical Inspection Service to its members i.e. each Cotton Mills is inspected at least once in 2 years and the Inspection Report not only enables the insurer to rate the risk correctly, but to recommend to the insured to carry-out improvements minimize losses and save insurance premium as well. The Membership of the Insurance Association of Pakistan consists of 30 companies transacting Non Life Insurance business (28 Pakistani & 2 Foreign), 7 Life Insurance Companies transacting life business (5 Pakistani & 1 Foreign) and a state owned Re-insurer (PRCL) in Pakistan. Total membership of the Association as on August 2012 is 38. The premium written for 2011 was a little over Rs. 43 billion for Non Life Insurance business & Rs. 23 billion for life business. The premium income of the companies vary, some are large, some small. Larger companies pay more towards the Associations expenses, but each company big or small have only one vote. The objective of the Association is generally to promote, support and protect the status, common interest and welfare of Insurance Companies in Pakistan and in particular of those insurers who are Member of IAP, also to act on behalf of its members both collectively and individually in any matter affecting their interest and to achieve its objectives IAP has developed a Road Map & Code of Conduct for the industry. Five year goals and developmental plans set out in the above said Road Map are as under: 1.To have in place a practicable and effective Code of Conduct and to evolve a process for its strict adherence/compliance by its Members. 2.To ensure that IAP Members fully understand and adhere to the regulatory requirements, thus managing their business based on sound financial footings with a keen emphasis on the best practices of corporate governance. 3.To initiate and develop a comprehensively planned campaign of insurance to create awareness amongst the public to impart its advantages focusing on specific products and quality customer service. 4.To ensure that current and future Human Resource needs of the Insurance Industry are adequately met. 5.To stop the Motor Third Party Insurance extended by fraudulent or unrecognized insurance representatives. IAP - CODE OF CONDUCT. Pakistan is in the process of reshaping its economy to meet the challenges of a global marketplace. The government has introduced a range of reforms designed to promote and consolidate Pakistans position as an emerging market in the region. The changes have resulted in a deregulated and liberalized financial sector marketplace. Although filing of rates is no longer required, there are, however, separate parts in the Ordinance on Market Conduct & Intermediaries which lay down the duties/responsibilities of Direct Insurance Companies and of Intermediaries. The developments in the regulatory environment in Pakistan are in line with those in the International markets. Compliance with regulations is becoming exceedingly important. Around the world, the insurance industry is built on a promise to its customers - that it will be there when its customers need it, and that it can, and will, honor its commitments. The insurance industry is based on trust, much more so than many other industries. It is therefore vital for individual companies and the industry as a whole to be perceived as having the highest integrity and professional standards. One of the priorities identified by the IAP for the current year is the introduction of a Code of Conduct for its members characterized by the following vision for the industry: * A good public image and integrity * Financial soundness and security * Professional management and fair treatment of policyholders *High standards in sales and servicing * Transparency, cost-efficiency and product innovation. A Code of Conduct, duly adopted by the IAP membership would contribute not only to enhancing the image of the Insurance Industry locally, but would also project the industry well in International for ums and in global dealings.
Posted on: Wed, 24 Dec 2014 07:06:25 +0000
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