An exclusive interview with Syed Ali Hassan Zaidi, COO, TPL Insurance
Profile
Syed Ali Hassan Zaidi is a thorough professional with diversified experience of over 15 years. He is currently serving as the Chief Operating Officer for TPL Insurance where he also oversees the Strategy functions with special focus on Insurtech/digital initiatives. Over the years, he has worked on multiple initiatives & projects which has significantly contributed to TPL Insurance securing top position in the industry.
Ali has previously worked at Ernst & Young for Pakistan & Dubai offices in the Audit and Assurance function. He also served as Finance Advisor for the implementation of SAP at Shell Pakistan. He is a fellow member of Institute of Chartered Accountants of Pakistan and Chartered Institute of Management Accountants – UK. Following are the excerpts from an exclusive interview
PAGE: Please tell us the emergence and brief history of TPLI.
Syed Ali Hassan Zaidi:Â TPL Insurance (TPLI) entered the insurance industry of Pakistan with a clear focus to penetrate in the retail segment. At a time where insurance industry was focused on the corporate segment and innovation was nonexistent, TPLI introduced products that were suited for individual customers, setting service benchmarks that changed the landscape of the insurance industry.
TPLI has over the years surpassed customer expectations using technology and its customer-centric service delivery. TPLI has been at the forefront of bringing new products to Pakistan’s market such as Pay How You Drive auto insurance (Platinum Drive), Kar 4 Kar, yield based crop insurance, domestic travel insurance, Make your own product (CarCulator) and many such products in different segments.
TPLI also entered the corporate insurance segment in past years and has received phenomenal success owing to its market standing as a thought leader in insurance segment and proficient exposure management through top tiered reinsurance partners.
PAGE: What are key segments of insurance?
Syed Ali Hassan Zaidi: TPLI is a general insurance provider serving both traditional and Takaful business segments, offering insurance coverages in all property and casualty lines of business. With the goal of increasing insurance penetration in Pakistan, TPLI is concentrating on all customer segments, including corporate and individual (including micro segment). All socioeconomic categories can benefit from the products, and there are numerous ways for clients to get in touch with TPLI.
PAGE: Which is the fastest growing segment?
Syed Ali Hassan Zaidi: With an emphasis on the retail market, TPLI is leading industry digitization and has brought solutions and servicing via its feature-rich mobile app. It recognizes that digital insurance platforms and embedded insurance are the way to go to increase insurance reach throughout Pakistan and promote insurance to the younger, tech-savvy population.Â
The volume and attention that digital solutions generate demonstrate that, despite potentially yielding lower returns than traditional operations, digital is the way of the future for the insurance industry globally.
PAGE: Which is the most lucrative segment of business?
Syed Ali Hassan Zaidi: It depends on the strategy of each insurance company and how it positions itself in the industry, as well as where its specialty lies. TPLI has historically been a retail-focused company with customer satisfaction through quality service standards as its core performance indicator. TPLI is now replicating the same philosophy in its corporate segments, resulting in better customer retention and eventually long-term sustainable growth.
TPLI manages its exposures through optimal reinsurance arrangements with leading reinsurers and avoids pricing concessions due to competition to ensure risks ceded by its clients are adequately covered. With effective risk exposure management, all segments are positively contributing to the company’s profitability.
PAGE: How has Takaful experience been?
Syed Ali Hassan Zaidi: Islamic Insurance (Takaful) is key for the development of retail segment, and therefore, TPLI was the first conventional insurance company to launch window Takaful operations in Pakistan. Initially, it was difficult to explain and gain traction on the concept of Takaful but, over the years, the Takaful segment has grown, and understanding of Takaful has also improved. Our portfolio is now equally divided between Takaful and conventional insurance, with a higher growth in the Takaful segment.
PAGE: Is TPLI in the Agri insurance business?
Syed Ali Hassan Zaidi: TPLI is focused on various components of Agri insurance i.e., crop insurance, livestock insurance, and tractor insurance. The company launched Pakistan’s first yield-based crop insurance with the assistance of international partners and commercial banks. It is a segment that requires more support from regulators and governments so that farmers can afford and benefit from the product offering. Similarly, TPLI has insured Pakistan’s First Livestock Fund that operates on cattle fattening across various locations in Pakistan.
The development of agriculture insurance is part of the long-term objectives, and TPLI is engaged with various stakeholders to improve the penetration of agriculture insurance in Pakistan. However, this is a long journey, and we will hopefully see results gradually in the next decade.
PAGE: Why has Health Insurance in Pakistan remained confined to the corporate sector?
Syed Ali Hassan Zaidi: One of the reasons for low insurance penetration in Pakistan is the negligible health insurance segment. Health insurance requires a certain capacity at hospitals, but due to a lack of investment in the health sector, the overall ecosystem for health remains below par.
Furthermore, historically, there were no initiatives taken by the government to provide health insurance to the population. However, in the recent past, provincial governments have taken such initiatives that created awareness among the masses about the benefits of health insurance and encouraged hospitals to work with insurance companies in a professional manner. It is anticipated that with government support and with digital solutions available, the health insurance segment will grow in the next decade.
PAGE: What are the future plans of TPL Insurance?
Syed Ali Hassan Zaidi: TPLI will continue to disrupt the market with product innovation, setting even higher benchmarks for service, increasing insurance penetration across all segments, and improving the perception of insurance in Pakistan. TPLI has always leveraged technology to deliver its promises and will continue to be proactive in introducing customer-centric products and solutions with real-time accessibility for all insurance requirements.
PAGE: Is TPLI doing anything for empowering women financially?
Syed Ali Hassan Zaidi: TPLI has introduced products tailored for women in the health segment and offers especial discounts on certain products for our female customers. At TPLI, we understand the importance of female inclusion not only in our workplace but also in our customer segments. TPLI is also working on a program to offer income continuation to female micro-entrepreneurs to cover any disruption in their regular income due to climate change-related risks.
