Insurance important tool for economic development: PEW

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Share of insurance in GDP very low
Pakistan virus-related losses Rs2.5 trillion

Director General Federal Insurance Ombudsman Mubashir Naeem Siddiqui has said that the insurance sector plays a very important part in the national development however the pandemic has increased its importance manifold.

Despite the importance of insurance its share in the GDP is low which can be increased through efforts in the right direction, he said.

Talking to Dr. Murtaza Mughal, President of Pakistan Economy Watch and former Chairman FPCCI Central Insurance Committee on Insurance, Mubashir Naeem Siddiqui said that the Insurance Ombudsman is providing valuable services to the society and protecting the rights of policyholders which will help improve this sector.

He noted awareness is being created among the masses and disputes are being resolved amicable which is benefitting all the stakeholders.

On the occasion, Dr Murtaza Mughal said that the second wave of corona virus has frightened the world as not a single country is insulated from the pandemic.

He said that pandemic has inflicted a loss of almost 12 trillion dollars to the global GDP while annual losses in Pakistan have been estimated at Rs2.5 trillion and the losses will continue in 2021.

Insurance companies all over the world are trying to face the challenges of pandemic by introducing new products but Pakistani insurance sector is far behind in this race, he observed.

Local insurance companies should provide maximum relief to the virus-hit people and businesses which is also good for their businesses, he demanded.

In: Pakistan Economy WatchAuthor: pakistaneconomywatch