The National Assembly's Standing Committee on Commerce has urged Pakistan National Insurance Company Limited (NICL) and Pakistan Reinsurance Company (PAKRe) to focus on strengthening their role in the private sector and expanding public relief efforts.
The objective is to contribute to a more inclusive and relief-oriented insurance framework for Pakistan’s citizens, reported the newspaper Dawn.
The Committee last month reviewed NICL’s strategic plans to amend its legal framework, enabling the corporation to broaden its services and provide greater benefits to the public. The CEO of NICL briefed the Committee on the company’s financial standing, including its retained earnings and the ability to contribute dividends to the government. In light of this, the Committee stressed the importance of NICL’s expansion into the private sector to bring more affordable and accessible insurance products to the general public.
Similarly, PAKRe highlighted its significant progress in underwriting profits and a strong investment portfolio, while also emphasising the need for enhanced private sector participation to foster competition and innovation in the reinsurance industry. The Committee discussed how these reforms could ultimately lead to more efficient services and better coverage for the public, particularly in climate risk and health insurance.
Both NICL and PakRe are under the administrative control of the Ministry of Commerce. NICL provides general insurance coverage for moveable and immovable assets belonging to federal and provisional governments, local authorities, and statutory corporations. PakRe is the country’s only national reinsurer providing reinsurance protection to the local insurance industry by way of treaty and facultative businesses.