The Importance of Insurance in Pakistan

Developing countries like Pakistan with large populations must place a lot of importance on insurance both in terms of businesses and households. Many Pakistani people have lower standards of living and therefore may be vulnerable to health risks, as well as being deeply affected by financial shocks.

Both criminal activity and climatic shocks are also common and make it so that Pakistanis face a lot of uncertainty in their lives and ownership over their assets. Therefore, not only do business owners fear to lose what they have built up, but families require insurance to go about their daily lives without worries.

3 popular types of insurance in Pakistan

Insurance of different forms is widespread in Pakistan. However, due to the socio-economic landscape, some types of insurance plans and policies are more preferred by Pakistanis and are more popular amongst the population. These include

1.   Life Insurance

Life insurance policies typically charge a premium from the policyholder, in exchange for providing an agreed-upon sum of money to the policy holder’s family (or other beneficiaries) upon their death.

Life insurance policies are extremely popular in Pakistan due to the financial burden falling on the main bread-winners of the family, and the uncertainty the family has to face in case of their demise, as well as the problems caused by a low standard of living.

Policyholders want to make sure their family’s future is secure which is why they opt for these policies, which are very beneficial for them.

2.   General Insurance

General insurance refers to insurance relating to property and automobiles, or any other form of insurance not concerning the life and health of the policyholder. It protects people from the loss of their assets in case of accidents and criminal damage.

This kind of policy is helpful for business owners as they can invest in their full potential and have the assurance that they will be protected against external damage. Along with that, families can increase their standard of living, by purchasing property or cars, and have the policy back them up.

This is helpful both in stimulating the economy and making the day-to-day lives of Pakistanis safer and allow them to live up to their abilities whilst simultaneously providing a safety net for troubled times.

3.   Health Insurance

Health insurance policies are designed to cover the policy holder’s medical expenses, should any problem arise in the future. It protects against losses and ensures that policyholders can pay hefty medical bills should they need to. 

It is extremely important for people in Pakistan to have access to good quality health insurance since public hospitals often are over-burdened and have limited resources and capabilities. Private hospitals, on the other hand, are simply too expensive for a majority of the population to access.

Therefore, health insurance policies allow people to navigate their uncertain lives and have the ability to provide funds for medical emergencies.

3 top insurance companies in Pakistan

There are many insurance companies in Pakistan, each with their benefits and capabilities. However, the top companies are those trusted by most Pakistanis, which include

1.   Jubilee Insurance

Jubilee Insurance is one of the most well-known insurance companies in Pakistan and provides a wide variety of insurance plans such as travel, life, motor, and medical insurances as well as personal pension plans. 

They offer the ability to report claims and purchase as well as service policies online, saving the hassle of visiting their office for many Pakistani people, and allowing them convenience as well as trustworthiness. Alongside that, they also have the JubiCare App, which allows clients to access all of the company’s services at the press of a button.

2.   Adamjee Insurance

Adamjee Insurance is a well-established company that offers services in both Pakistan and the United Arab Emirates. Its international presence lends it credibility as a trustworthy service in Pakistan.

Along with traditional insurance policies, Adamjee offers plans tailored to the requirements of many of Pakistan’s individuals. Its agricultural insurance, for instance, is extremely valuable in the agro-based economy of Pakistan and is required due to the climactic uncertainty associated.

3.   EFU General Insurance

EFU General Insurance has had a presence in Pakistan ever since the creation of the country itself and has set high standards as the leading company in the market.

One particular benefit of EFU’s insurance policies is that they work with each customer to ensure that their policies are tailored according to the customer’s requirements. This helps Pakistan’s diverse population to find policies that work well for their own particular needs.

Therefore, we can see that Pakistani people value insurance policies that allow them to ease of access, trust-worthiness and are according to their requirements. Companies that focus on their customers and what they require do quite well in the country