PAKISTAN MICRO FINANCE SECTOR

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Microinsurance Policy Perspective, Trends and
key issues Presentation to SECP and Insurance
Sector Seminar 29 November 2011
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Policy Perspective
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From a pyramid
Non-Poor
Transitory Non-Poor
Microfinance (Credit, Deposit, Insurance and
Remittances)
Transitory Vulnerable
Transitory Poor
Chronic Poor
Extremely Poor
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To a Diamond
HNWI
Middle Class
Poor
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Responding to poverty The arsenal
HEALTH CARE
What to do is, by and large known and simple
EDUCATION
Access To
PovertySIGNIFICANT REDUCTION
MICRO FINANCE
HOUSING
BASIC SERVICES
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Relationship between Financial Exclusion and
poverty exists
Source http//maps.grida.no/go/graphic/poverty
-by-country-share-of-population-living-under-usd-2
-per-day-2004
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There is a moderate to strong relationship
between GDP per capita and usage of financial
services
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Bank Loan per 1,000 adults
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Deposit Accounts per 1,000 Individuals
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Bank Branches per 1,000 Adults
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Insurance Density Gross Premium per capita
Insurance density in USD
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Industry Trends
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Trends in credit, Deposits and insurance
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Trends in Insurance
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Trends in Insurance
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Trends in Insurance
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Issues/Challenges
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Issues/Challenges

• Transparency  
• Cashless vs. cash based
• Settlement of claims (time required)
• Competition (product pricing)
• Volumes required (low cost)
• Existing products not meet the need
• Product diversification
• Marketing difficult then Credit/Savings
• Push Vs. Pull
• Late reimbursement of claims

• Awareness Low literacy
• High Premium
• High Transportation Cost (Rural)
• Product viability
• Culture (Low demand for voluntary insurance
• distrust
• Diseases high
• Consumer protection

MFPs Insurance Co.
Regulation
Client

• Lack of understanding of microinsurance
• Lack of appropriate information
• Legal framework not supportive
• MFPs agents or brokers
• Product diversification

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Role of PMN
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THANK YOU.