What is Insurance?
Insurance is a risk management tool primarily used to hedge against the risk of a contingent
loss in future by any means either by accident, by injury or byany natural etc.
The role of the insurance sector is significant in promoting the stability of the overall
macroeconomic environment by protecting against any uncertainty to economic agents
by an equitable transfer of risk, in exchange for a premium/monthly, quarterly or yearly fee.
Insurance Sector in Pakistan:
The insurance sector in Pakistan has seen large improvements and boost over the last decade. That is primarily due to the rise in the demand for insurance by corporate, households and the public sector.
However, with two-thirds of the population living in rural areas and low per capita income,
the insurance sector faces various hurdles in its growth and its share in the assets of the
the financial system of the country was only 4.1 per cent.
Types of Insurance in Pakistan:
The insurance business in Pakistan is categorized into two sub-sectors:
- non-life insurance
- life insurance.
Types of Non-Life Insurance in Pakistan:
These are some types of non-life insurance in Pakistan:
- Property Insurance.
- Fire Insurance.
- Liability Insurance.
- Guarantee Insurance.
- Social Insurance.
How many insurance companies are there in Pakistan?
According to a report by the State bank of Pakistan, 53 companies provide non-life insurance while only 5 companies provide life insurance.
Which companies offer life insurance in Pakistan?
These 5 companies are the Best Insurance Companies in Pakistan :
- Jubilee Life Insurance
- Efu Life Insurance
- Adamjee Insurance Company
- Alfalah Insurance
- State Life Insurance of Pakistan
Jubilee Life Insurance:
Jubilee Life Insurance is one of the biggest names in insurance. It is on the list of top 5 companies in providing insurance services in Pakistan. Jubilee Life Insurance is very popular because of its excellent services and easy terms and conditions.
Jubilee offers the following insurance policies for its customers:
- Individual life insurance
- Family Takaful (an insurance policy that is per the sharia laws)
- Corporate insurance (an insurance policy for the corporate world)
- Online insurance.
- and many more.
EFU Life Insurance:
EFU Life Insurance is the first private life insurance in Pakistan. Efu is considered one of the best insurance companies in Pakistan. EFU offers its customers a large number of insurance policies. The company also provides you with a mobile application also the first life insurance company in Pakistan to be ISO certified.
Offerings by EFU:
- Pension Plans
- Education Planning Product
- Inflation Protection Benefit
- and much more.
Adamjee Insurance Company:
Adamjee Life insurance is also one of the largest insurance offerings companies in Pakistan. It works under the admajee group and by some sources of Wikipedia adamjee family is among the top 40 richest families in Pakistan. AICL started its operations in September 1960. The Services offered by the AICL are also IS0 certified.
AICL offers different types of insurance to different sectors:
- Financial lines insurance
- Liability lines insurance
- Personal accident insurance
- Engineering insurance
- Fire & property insurance
- Health insurance
- Motor insurance
- Travel insurance
- Agriculture insurance
Alfalah insurance is a sister company of alfalah bank. It is AA rated company and it achieved this rating in a short span of 13 years. Its branch is present in almost all major cities of Pakistan.
Alfalah deals in many kinds of insurance policies like:
- Health Insurance
- Property Insurance
- Marine Cargo Insurance
- Energy Insurance
- Engineering Insurance
- and many more
State Life Insurance:
State Life Insurance is a government-owned body that is providing insurance policies. It is one of the best insurance companies in Pakistan.
Some of the plans offered by SLI are:
- Whole Life Assurance.
- Health Care Plans
- Jeevan Sathi Assurance
- Child Protection Assurance
- Wealth Builder Plan
- Supplementary Covers
Which one is Best Insurance??
Now you know the companies which offer insurance in Pakistan, now the question is which one is best? Well, it depends on the budget and personal preference. You should do your research before selecting the best plan and insurance company for your needs. Match and compare between different companies to select the perfect plan. Visit their offices and take advice from them for your needs. This way you will be able to select the best insurance for you.
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