Sindh first province in Pakistan to establish its own insurance company: CM

Sindh Caretaker Chief Minister Justice (retd) Maqbool Baqar has said the creation of Sindh Insurance Ltd is a significant milestone and its mission is to provide insurance coverage for provincial government properties, crops, and other relevant areas.

“This initiative is groundbreaking, as it makes Sindh the first province in Pakistan to establish its own insurance company. This development serves as a model for other provinces to follow to improve financial protection and resilience,” he said while speaking at the closing ceremony of the International Insure Impact Conference organised by SECP at a local hotel on Thursday. Chairman SECP Akif Saeed, SECP commissioners and others were present on the occasion.

The CM congratulated the SECP on organising the highly successful conference. “This conference has been truly impressive, uniting experts in the field, insurance industry participants, and international specialists all at one place,” he said and added that the valuable insights and passion shared during this event had the potential to shape the future of the insurance industry in Pakistan.

The insurance serves as a financial cushion in case of unforeseen circumstances and eases concerns about potential risks, enabling people to concentrate on recuperating and reconstructing, the CM said and added that regardless of whether it was for vehicle, residence, well-being, or enterprise, insurance was crucial to guaranteeing that one didn't have to face unexpected financial hurdles alone.

The CM said that Pakistan's exposure to natural disasters such as heavy rains, floods, droughts, and landslides was frequent, making insurance increasingly important. He added that Sindh was particularly affected, with the population facing hardships such as losses of homes, livelihoods, and crops -- their sole source of income. Consequently, discussions on disaster risk management, insurance pools, crop insurance, and compulsory insurance were not only beneficial but essential for improving insurance.

Baqar said that other crucial topics, such as elevating the Takaful sector and the need for collaboration and technology to enhance insurance penetration in Pakistan, were inevitable. He added that the significance of image-building and cultural and religious beliefs regarding insurance couldn’t be overlooked in our society.

He said that the SECP has announced a groundbreaking five-year strategic plan for the insurance industry in Pakistan, marking a historic moment. “This plan sets the stage for the future of insurance in the country, with the overall goal of achieving an insured Pakistan,” he said and added that the theme of ‘Journey to an Insured Pakistan’ was emphasized as a crucial pursuit for the sector.

He said the significance of insurance in mitigating risks and protecting assets was acknowledged by the Sindh government. “The creation of Sindh Insurance Limited, the first insurance company owned by a provincial government, is a significant milestone. The company's mission is to provide insurance coverage for provincial government properties, crop insurance, and other relevant areas. This initiative is groundbreaking, as it makes Sindh the first province in Pakistan to establish its own insurance company. This development serves as a model for other provinces to follow to improve financial protection and resilience.”

The CM said his government could work more closely with the SECP and the insurance industry to improve the availability of crop and livestock insurance and develop a plan for the introduction of disaster risk insurance in the province. “It is also important for the government to cooperate with developmental and donor organisations to provide guidance and assistance in creating a climate-resilient environment and devising a disaster risk financing strategy that prioritises insurance as a critical component,” he said and added that a comprehensive study on motor vehicle third-party liability insurance was commendable.

The insurance industry is facing a challenge due to the high provincial sales tax, the CM said and added that this makes insurance products more expensive, making them unaffordable for many people. "We want to offer our full support in finding a solution to this issue."