Interview with Mr Naim Anwar – Chairman, Pakistan Insurance Institute
PAGE: Tell me something about yourself, please:
Naim Anwar: I did my graduation from Karachi and then followed ACCA as a background. After working nearly ten years in London in textiles and leather sectors, came back to Pakistan in 1992 and since 1993 entered insurance industry by joining Adamjee Insurance Limited, where I parted as Executive Director and joined PICIC Insurance Limited as Deputy Managing Director. With the change of management at Crescent Star Insurance Limited, one of the oldest insurance firm in Pakistan, I got associated as Managing Director & CEO in 2013 till now. I have been member of various committees at Insurance Association of Pakistan and have been Vice Chairman of IAP. Currently I am Chairman of Pakistan Insurance Institute.
PAGE: How would you comment on risk management in the form of insurance contracts?
Naim Anwar: Risk as the word defines is everywhere all over the life and trade. Financial risks are not only covered by banks but insurance is also a financial risk that provides the cover to all sectors of society and industry/trade. Insurance is never for profit, but restores the insured to the position the insured was in before the loss.
PAGE: Insurance is regarded as a slow-growing, safe sector for investors. What is your perspective about it?
Naim Anwar: Insurance penetration in Pakistan has always been a concern and is one of the lowest in the world at 0.80%. Slowly things are improving and there is a vast scope of improvement in the sector.
PAGE: Not all insurance companies offer the same products or cater to the same customer base. Your comments, please:
Naim Anwar: Life and Nonlife are under separate license, however, both sectors are allowed to cover health. Most companies cater all products as allowed to them, however, like all other sectors insurance companies also find their niche markets, which they prefer considering the loss ratios and client portfolios.
PAGE: Some companies engage in reinsurance to reduce risk. Could you give your views on it?
Naim Anwar: All risks are mostly covered under re insurance arrangements either through treaty or facultative basis. Treaty being a full year arrangement while facultative basis is case to case.
PAGE: One of the more interesting features of insurance companies is that they are essentially allowed to use their customers’ money to invest for themselves. How would you comment on it?
Naim Anwar: Most insurance companies make profits through investments by investing mostly the premium collected. Investment profits give them better reserves to meet losses and remain liquid. Healthy investment portfolios help in better rating, which eventually assists in underwriting risks more comfortably.