Indian insurers to visit Pakistan: Business prospects
By Sabihuddin Ghausi
KARACHI, Sept 27: The state-owned General Insurance Corporation of India is exploring reinsurance business possibilities with the Pakistan’s private general insurance companies and plans to send a team of insurance experts soon after Ramazan.
“We will examine their offers for reinsurance business before taking any decision,” Saifuddin Zoomkawala, chairman of the Insurance Association of Pakistan, told Dawn on Tuesday. Mr Zoomkawala led a delegation of Pakistani private insurance businessmen to Mumbai to attend an international conference on “Insurance and reinsurance scenario — Future outlook”, held under the auspices of the Federation of Afro-Asian Insurers and Reinsurers.
Leaders of the insurance industry of India and Pakistan held a series of meetings on the sidelines of the conference to explore cooperation. Mr R.K. Joshi, chairman and the Managing Director of the GIC, offered reinsurance cooperation and assistance in many other fields.
Mr Zoomkawala suggested to leaders of the Indian insurance industry to offer specific proposals that could be examined and made basis of the consultation for the cooperation.
The GIC is said to have paid promptly Rs20 million to the Indian insurance companies for claim payments to those who suffered losses and damages in the devastating rains of Mumbai in the recent past.
Pakistan’s total volume of general insurance is hardly Rs21 billion or just a little over $300 million which is insignificant when compared to the insurance business volumes in other countries.
At present, Pakistan insurance companies depend to the extent of 75 to 80 per cent on the European reinsurance companies and the rest of reinsurance business goes to Japanese reinsurance companies.
But more than reinsurance business, the leaders of Pakistan insurance industry were impressed with the insurance training and educational facilities in India. “As compared to Europe, insurance training in India is much less expensive, better in quality and relevant to Pakistan’s business and above all nearer to our home,” Mr Zoomkawala said.
