- State-run health insurance plans enhance healthcare access, mitigate financial barriers and foster improved health outcomes for beneficiaries
- Innovative solutions help microinsurance, livestock protection and disaster resilience
Interview with Dr. Syed Arif Hussain — CEO, Alpha Insurance Company Limited
Profile:
Dr. Syed Arif Hussain, Chief Executive Officer Alpha Insurance Company Limited, is a highly motivated individual. His expertise are in management, resource development, marketing, and execution of business strategies. His professional experience is spread over 25 years in progressive senior-level positions and has experience in underwriting, reinsurance, claims management, and marketing with the State Life Insurance Corporation of Pakistan, Dawood Family Takaful Limited, East West Insurance Company Limited as a Chief Executive Officer. He also headed Takaful Pakistan Limited a Non-Life Takaful Company and Excel Insurance Company Limited and Head of Takaful of East West Insurance Company Limited. His expertise include Life, Health and project related Insurance/Takaful schemes. He has extensive experience in restructuring, insurance operations and automation.
He holds M.B.B.S. and Master’s Degree in Business Administration. He has also attended a number of Insurance/Takaful and management related workshops and conferences conducted locally and internationally.
Alpha Insurance Company Limited, a subsidiary of State Life Insurance Corporation of Pakistan, was registered in 1951 and to underwrite all classes of general insurance businesses. The company has acquired IFS rating “A+” by JCR-VIS. With the objective of providing and delivering the best, the organisation is operational all over the country. It is a bonafide member of the Insurance Association of Pakistan. The balance sheet reflects the financial soundness of the company with sizeable paid-up capital of Rs500 million, equity 718 million.
PAGE: What is your standpoint about health, life, auto and property insurance in Pakistan?
Dr. Syed Arif Hussain: In Pakistan, insurance is becoming increasingly important as people recognise the need to mitigate risks associated with health, life, auto, and property. Here’s a brief overview:
1- Health Insurance:
With rising healthcare costs, health insurance is becoming essential for individuals and families. Health insurance plans in Pakistan typically cover hospitalisation expenses, outpatient services, and sometimes even preventive care. However, the penetration of health insurance remains relatively low compared to other countries, and there’s a need for more awareness and accessibility.
2- Life Insurance:
Life insurance provides financial protection to the insured’s beneficiaries in the event of their death. It offers peace of mind by ensuring that loved ones are financially secure. In Pakistan, life insurance products vary from term life policies to whole life policies, offering different levels of coverage and investment options.
3- Auto Insurance:
Auto insurance, also known as motor insurance. It provides coverage against damages to the insured vehicle as well as third-party liability. There are different types of auto insurance policies available, including comprehensive coverage and third-party liability coverage.
4- Property Insurance:
Property insurance protects against damages or loss to physical assets, including residential and commercial properties. It covers risks such as fire, theft, natural disasters, and vandalism. Property insurance is particularly important in Pakistan, where natural disasters such as earthquakes and floods are common.
Overall, insurance plays a crucial role in mitigating financial risks and providing security to individuals and businesses in Pakistan. However, there are challenges such as low awareness, affordability issues, and the need for more comprehensive coverage options that the insurance industry continues to address.
PAGE: How could an individual assess the risks faced in personal or professional life?
Dr. Syed Arif Hussain: Assessing risks in personal or professional life involves identifying potential threats or uncertainties that could impact one’s goals, well-being, or assets. Here are some steps individuals can take to assess risks effectively:
1- Identify potential risks:
Start by identifying all possible risks that could affect your personal or professional life. These may include financial risks, health risks, legal risks, natural disasters, market fluctuations, or other unexpected events.
2- Evaluate the likelihood:
Assess the likelihood of each risk occurring. Consider historical data, industry trends, and expert opinions to gauge the probability of different risks manifesting.
3- Assess the impact:
Determine the potential impact of each risk if it were to occur. This involves considering both the financial and non-financial consequences, such as loss of income, damage to reputation, or personal injury.
4- Prioritise risks:
Prioritise risks based on their likelihood and potential impact. Focus on addressing high-priority risks first, as these pose the greatest threat to your personal or professional life.
5- Develop risk mitigation strategies:
Once you’ve identified and prioritised risks, develop strategies to mitigate or manage them. This may involve purchasing insurance, implementing safety measures, diversifying investments, creating contingency plans, or seeking professional advice.
6- Monitor and review:
Regularly monitor and review your risk assessment to ensure it remains relevant and up-to-date. Circumstances can change over time, so it’s essential to acclimate your risk management strategies accordingly.
7- Seek professional advice:
Consider consulting with financial advisors, insurance agents, legal experts, or other professionals who can provide guidance on risk assessment and mitigation strategies tailored to your specific situation.
By following these steps, individuals can gain a better understanding of the risks they face in their personal and professional lives and take proactive measures to protect themselves and their assets.
PAGE: What is your perspective about state-run health insurance programmes?
Dr. Syed Arif Hussain: State-run health insurance programmes can have both advantages and disadvantages, depending on various factors such as implementation, funding, and the specific needs of the population they serve.
Advantages:
1- Universal coverage:
State-run health insurance programmes often aim to provide coverage to all residents, ensuring that everyone has access to essential healthcare services regardless of their income or employment status.
2- Cost-effectiveness:
By pooling resources and negotiating prices with healthcare providers, state-run programs can potentially achieve cost savings and provide more affordable healthcare options compared to private insurance plans.
3- Preventive care:
These programmes may prioritise preventive care and wellness initiatives, which can lead to better health outcomes and reduced healthcare costs in the long term by preventing or managing chronic diseases.
4- Risk pooling:
State-run programmes typically involve a large risk pool, spreading the financial risk of healthcare expenses across a broader population and reducing the burden on individuals facing high medical costs.
5- Regulatory oversight:
Government oversight can ensure that health insurance programmes adhere to certain standards of coverage, consumer protections, and transparency, which can benefit enrollees.
Disadvantages:
1- Bureaucracy and inefficiency:
State-run programmes may suffer from bureaucratic inefficiencies, leading to administrative delays, red tape, and challenges in accessing care.
2- Funding challenges:
Financing state-run health insurance programmes can be challenging, particularly if they rely heavily on government budgets or taxes. Adequate funding is essential to sustain the program and ensure quality care for beneficiaries.
3- Limited choices:
Participants in state-run programs may have limited choices of healthcare providers or treatments compared to those with private insurance, potentially leading to longer wait times or lower-quality care in some cases.
4- Political influence:
State-run health insurance programmes can be subject to political influence and fluctuations in funding, leading to uncertainty and potential disruptions in coverage for beneficiaries.
5- One-size-fits-all approach:
State-run programmes may adopt a one-size-fits-all approach to healthcare coverage, which may not fully address the diverse needs and preferences of the population.
Overall, the effectiveness of state-run health insurance programs depends on how well they are designed, funded, and managed. When implemented effectively, they can help improve access to healthcare, reduce financial barriers, and promote better health outcomes for the population they serve.
PAGE: The insurance sector penetration has stagnated for years at less than one per cent of GDP, while several categories, including micro insurance, livestock insurance, and insurance against losses due to disaster and terrorism, were almost nonexistent. Your views:
Dr. Syed Arif Hussain: The stagnation of insurance sector penetration, particularly in areas like microinsurance, livestock insurance, and coverage against disaster and terrorism losses, raises concerns about the resilience of Reinsurance/Retakaful, communities and the economy as a whole. Microinsurance plays a vital role in providing financial protection to low-income individuals and small businesses, yet its limited availability indicates a gap in addressing the needs of vulnerable populations. Livestock insurance is crucial for agricultural communities, providing a safety net against livestock losses due to disease, natural disasters, or theft.
Moreover, insurance against losses caused by disasters and terrorism is essential for both individuals and businesses to recover swiftly and mitigate the economic impact of such events. To address these issues, policymakers, insurers, and other stakeholders must collaborate to develop innovative solutions tailored to the unique challenges of these sectors. This could involve implementing regulatory reforms to encourage market expansion, leveraging technology to reduce distribution costs and improve accessibility, and increasing public awareness about the benefits of insurance coverage.
Overall, enhancing insurance sector penetration in these underserved categories is not only critical for individual financial security but also for fostering economic stability and resilience in the face of uncertainties.