A Review On Insurance Association of Pakistan (IAP)

To be a forum of active exchange on matters relating to insurance. To promote, support and protect common interests of member companies carrying on the business of insurance in Pakistan and to endeavor to increase insurance awareness and penetration in the country”.

The Insurance Association of Pakistan (IAP), established in 1948, is a dynamic and vision driven body that represents the insurance industry of Pakistan and voices the mandate of its member companies at various levels. Representing both life and non-life insurance companies that write about 285 billion worth of premium annually, IAP’s members are amongst the most influential of insurance companies of the country.

Locally, the Association subscribes to Federation of Pakistan Chamber of Commerce & Industry (FPCCI), Pakistan Insurance Institute (PII), Pakistan Institute of Corporate Governance (PICG), SAARC Chamber of Commerce (SAARC CCI) and internationally, National Fire Protection Association (NFPA). The Association provides Technical Inspection Service to its members. Association’s risk reports not only enable the insurers to analyze the risk correctly, but also recommend risk improvements to minimize losses and save valuable national assets.



Regional Committee North
Accident Technical Committee
Life Technical Committee
Marine Technical Committee
Property technical Committee
Takaful technical Committee
Miscellaneous Committee
The IAP in the interest of insurance business has also developed a web based portal for its members to share information of motor vehicles thereby, minimizing insurance fraud to a great extent. This portal also acts as the repository of insured stolen and CTL vehicles. The committees are working on couple of such other online portals.

The Association has developed a “No Fault Motor Third Party Liability Insurance” scheme for the benefit of public at large. It is encouraging to note that in line with this Scheme, SECP has recommended amendments in Motor Vehicles Act, 1939 to introduce “No Fault Model”.

IAP offices in Karachi and Lahore have been equipped with video conferencing facility.

Insurance Benefits

Life Insurance Benefits
Life insurance is useful for dealing with unexpected financial losses due to the risk of death or the risk of living too long. This helps life insurance customers to cover the costs of living for their families who are left behind or even support themselves in old age.

Health Insurance Benefits
We can take care of our health. But, who knows if things happen that require you to take medication. For example, there was an accident. If you hold a policy, you don't need to be confused about maintenance costs. Health insurance is also very useful for those of you who have a history or symptoms of serious illnesses that require a lot of medical expenses. The policy will help alleviate these costs.

Education Insurance Benefits
Educational insurance helps you prepare for your child's future. As you know, the cost of education is increasing every year. Of course this is a burden if you don't prepare early. Wrong, your children cannot continue their education to a higher level. You see, even though the government has launched a 12-year compulsory education program, there are still many children who drop out of school. Therefore, let's make a way for your children to achieve their dreams.

Ownership Insurance Benefits
Ownership insurance includes vehicle and property insurance. As we know, vehicles and property such as homes, offices and other buildings are valuable assets that have high value. By insuring it, you can minimize the probability of loss in the event of an accident that results in your vehicle being damaged or a disaster that causes your building to be damaged. Of course you don't want that to happen. Therefore, there is nothing wrong with being an insurance customer so that expenses are kept under control.

Travel Insurance Benefits
If you are a person who travels a lot, try to sign up for travel insurance. So, you can have a quick solution if there are things that are detrimental to your trip, such as loss of luggage, loss of travel documents, or things that require medical attention.

Public awareness of health is getting higher. One proof of this is that more and more insurance products are popping up. Starting from Health Insurance, Life Insurance, protection insurance for goods (vehicle or property), and many more.

For those of you who are looking for a trusted Health Insurance product or are choosing family health insurance, there are things that need to be considered. Don't be tempted by cheap premiums, but these insurance products are not as needed. When you are sick, insurance cannot provide protection for your condition.

Before transacting with a Marketing Agent, make sure the insurance product of your choice is trusted. Here are the characteristics:

- Trusted insurers must inform their products transparently and clearly. When you discuss with the Marketing Agent, he will inform the system applied by the Insurance Company. He will answer your questions clearly according to the terms of the product.

- Even transparent information can also be found through the company website. Trusted insurance products will upload brochures containing information on exemptions, costs related to policies, and insurance risks (market risk, exchange rate risk, economic risk, and others).

- If the company has an international network, the insurance product is the same. The best Life Insurance or Health Insurance has hospital and treatment coverage all over the world. Not only to neighboring countries, but also to the United States.

- Trusted insurance does not hesitate in health preventive efforts. Insurance companies as well as holding regular events, such as talk shows about health and sports activities. This activity is for customers and potential customers, so that they adopt a healthy lifestyle and have awareness of good health protection.

The Insurance Association of Pakistan (IAP), established in 1948, is a dynamic and vision driven body that represents the insurance industry of Pakistan and voices the mandate of its member companies at various levels. Representing both life and non-life insurance companies that write about 285 billion worth of premium annually, IAP’s members are amongst the most influential of insurance companies of the country.

The members of IAP collectively contribute to approximately 98% of life and non-life insurance premium in the private and public sectors. Out of its stronghold of 38 member companies, 29 companies transact non-life insurance business, 7 transact life insurance business,1 takaful operator, 1 a state owned reinsurer (PRCL) in Pakistan.

IAP is driven with the objective to promote, support and protect the status, common interest and welfare of companies carrying on the business of insurance and takaful in Pakistan and in particular of those insurers who are members of the Association. The Association also acts on behalf of its members in any matter affecting their interest.

IAP is unique in as much as it provides a professional platform to guide the members in technical matters related to the industry which is recognized both at national and international level. The Insurance Association of Pakistan is a trade organization registered by the Ministry of Commerce as an All Pakistan Trade Association and is Member of the Federation of Pakistan Chambers of Commerce and Industry. The Association corresponds with the National Fire Protection Association, USA, WK Webster, UK, the Association of Average Adjusters, UK, Association of British Insurers & the International Underwriters Association of London. IAP’s interaction with these international professional bodies results in sharing of valuable international experiences and receiving regular updates of technical advances being made elsewhere in the world.

Insurance also has various benefits that are classified into the following functions:

a) Transfer of Risk
As a means or mechanism for transferring the possibility of risk / loss from the insured as the "Original Risk Bearer" to one or several insurers (a risk transfer mechanism). So that the uncertainty in the form of the possibility of loss as a result of an unexpected event, will turn into certainty insurance protection (certainty) turns the loss into compensation or claim compensation with the terms of premium payment.

b) Fundraiser
As a collector of funds from the public (policyholders) to be paid to those who experience a disaster, the funds collected in the form of insurance premiums or fees paid by the insured to the insurer are managed in such a way that these funds grow, which will later be used for pay any loss that one of the insured may suffer.

c) Balanced Premium
To arrange in such a way that the premium payment made by each insured is balanced and reasonable compared to the risk transferred to the insurer (equitable premium). And the size of the premium to be paid by the insured is calculated based on a premium rate (rate of premium) multiplied by the sum insured.