Before 1947, there were three Insurance Associations in the subcontinent at Calcutta, Bombay and Madras; Bombay Association had a branch in Karachi. After the establishment of Pakistan, the Insurance Association of Pakistan was formed and inaugurated on 9th February,1948.
The Insurance Association of Pakistan is a forum for the exchange of information, knowledge, experience and statistics among its members. IAP, unlike other trade bodies provides a professional platform to guide the members in technical matters related to industry.
The Insurance Association of Pakistan is recognized both at National level as well as International Level. The Insurance Association of Pakistan is recognized 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 Fire Protection Association, London, the Association of Average Adjusters, London Association of British Insurers & the International Underwriters Association of London and it also receives valuable advices and guidance based on their world wide experience and connections. Individual Insurance Companies have friendly business connection with such world renowned reinsurers such as Swiss Re, Munich Re, Tokyo Marine etc.
The Association subscribes to Pakistan Insurance Institute (PII) & Pakistan Institute of Corporate Governance (PICG) and provides Technical Inspection Service to its members i.e. each Cotton Mills is inspected at least once in 2 years and the Inspection Report not only enables the insurer to rate the risk correctly, but to recommend to the insured to carry-out improvements minimize losses and save insurance premium as well.
The Membership of the Insurance Association of Pakistan consists of 32 companies transacting General Insurance business (30 Pakistani & 2 Foreign) and 4 Life Insurance Companies transacting life business (3 Pakistani & 1 Foreign) in Pakistan. Total membership of the Association as on 1st December 2008 is 36.
The gross premium for 2007 was a little over Rs. 31.5 billion for General Insurance business & Rs. 1.77 billion for life business. The premium income of the companies vary, some are large, some small. Larger companies pay more towards the Association’s expenses, but each company big or small has only one vote.
The objective of the Association are generally to promote, support and protect the status, common interest and welfare of General Insurance Companies in Pakistan and in particular of those insurers who are Member of IAP. Also to act on behalf of its members both collectively and individually in any matter affecting their interest. To achieve its objectives IAP has developed a Road Map & Code of Conduct for the industry.
Five year goals and developmental plans set out in the above said Road Map are as under:-
- To have in place a practicable and effective Code of Conduct and to evolve a process for its strict adherence/compliance by its Members.
- To ensure that IAP Members fully understand and adhere to the regulatory requirements, thus managing their business based on sound financial footings with a keen emphasis on the best practices of corporate governance.
- To initiate and develop a comprehensively planned campaign of insurance to create awareness amongst the public to impart its advantages focusing on specific products and quality customer service.
- To ensure that current and future Human Resource needs of the Insurance Industry are adequately met.
- To stop the Motor Third Party Insurance extended by fraudulent or unrecognized insurance representatives.
Activities of the Association are directed through Executive & Technical Committees (defined as Sectional Committee in the Memorandum & Articles of Association of IAP) which are as under:
EXECUTIVE:
- Executive Committee
- Lahore Regional Committee
TECHNICAL:
- Accidental Sectional Committee
- Fire Sectional Committee
- Marine Sectional Committee
