{"id":4180,"date":"2025-04-18T00:00:16","date_gmt":"2025-04-18T00:00:16","guid":{"rendered":"https:\/\/ipp-news.com\/?p=4180"},"modified":"2025-04-18T00:00:16","modified_gmt":"2025-04-18T00:00:16","slug":"ccp-flags-monopoly-concerns-in-insurance","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=4180","title":{"rendered":"CCP flags monopoly concerns in insurance"},"content":{"rendered":"<div>The Competition Commission of Pakistan (CCP) has released its comprehensive report on the state of competition in Pakistan&#8217;s insurance industry, highlighting key challenges and offering strategic recommendations for reform.<\/p>\n<p>Globally, the insurance market is expected to reach a premium volume of $7.4 trillion in 2024. The global average insurance penetration was 6.7%, while Pakistan&#8217;s was only 0.87% in 2022. In comparison, India and China had around 4% insurance penetration. Pakistan&#8217;s insurance density was $14 in 2022, compared to India&#8217;s $82. For a population of over 240 million, only 7.8 million life insurance policies \u2014 3% of the population \u2014 were sold in 2022.<\/p>\n<p>CCP Chairman Dr Kabir Ahmad Sidhu noted that the sector is hampered by monopolistic tendencies and regulatory protectionist policies. The report recommends removing competition barriers and encouraging a level playing field. The Ministry of Commerce oversees insurance, while SECP regulates it. The Insurance Ordinance 2000 transferred industry oversight to SECP.<\/p>\n<p>Key issues include monopolisation due to the 1972 nationalisation of the life insurance sector. Despite liberalisation in 1991, State Life Insurance Corporation (SLIC) holds a 55% market share and uses a sovereign guarantee as a marketing tool. Pakistan Reinsurance Company Limited (PRCL) enjoys exclusive rights to acquire 35% of reinsurance business under SRO 771(1)\/2007. National Insurance Company Ltd. (NICL) has exclusive rights to underwrite public sector firms.<\/p>\n<p>Restrictions on procuring facultative reinsurance from outside Pakistan and unfair bancassurance practices were also flagged. Bank-imposed limits and lack of transparency in product terms mislead customers. The Federal Insurance Ombudsman&#8217;s jurisdiction is limited to private insurers, creating confusion for consumers.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Competition Commission of Pakistan (CCP) has released its comprehensive report on the state of competition in Pakistan&#8217;s insurance industry, highlighting key challenges and offering strategic recommendations for reform. Globally, the insurance market is expected to reach a premium volume of $7.4 trillion in 2024. The global average insurance penetration was 6.7%, while Pakistan&#8217;s was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4180","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/4180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4180"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/4180\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}