In terror-stricken Pakistan, insurance industry booms

With terror activities spreading to urban pockets in Pakistan, a record four million Pakistanis subscribed to various life insurance policies in 2008.

According to a media report, Insurance companies in the country have posted an increase of 34.42 per cent in the last one year.

"Fear and terror are compelling people to buy maximum life insurance policies. As a result, sales for Pakistan's state insurance company have increased by 34.42 per cent in one year," reads the report in Korean e-zine

Though Pakistan, according to some reports, falls low on human safety levels, the turning point was the Marriot Hotel blast in the federal capital last year. It was after the attack that the urbane felt unsafe even in their own neighbourhoods.

"The State Life Insurance Corporation (SLIC) of Pakistan saw revenues of Rs 5.0 billion ($ 63.6 million) last year, as the company provided insurance to four million new policy holders and their families in 2008," reads the report.

SLIC Chairman Shahid Aziz termed the increase in revenue as "historic" and said the company had secured a renewal premium of Rs 12.65 billion in 2008, an increase of 25 per cent. It plans to better its performance in the new year. ".. (SLIC) aims to provide a better savings and financial protection by marketing various life insurance plans and policies to families throughout country," the report quoted Aziz as saying.

However, the company had to spend Rs 6.16 billion on claims in 2008, of which Rs 1.15 billion were "death claims" and Rs 5.01 billion were "maturity claims".