General Economic Review of Pakistag, Mg1

HAILEY COLLEGE OF BANKING AND
FINANCE
University of the Punjab, Lahore
Course Title:
Principles of Reinsurance
Presented to:
Sir Liaquat Ali Khan
Research Assignment title:
State Life Insurance Corporation 0f

Pakistan
1|Page Hailey College of Banking& Finance

Presented By:
Nida Asghar------------------------------Mi09MBA003
Ansa Sahar-------------------------------Mi09MBA013
Sahar Arif--------------------------------Mi09MBA015
Amna Ijaz--------------------------------Mi09MBA020
Sameera Rasheed----------------------------Mi09MBA059
Yasmeen Younas-----------------------------Mi09MBA063
Mehak Zahra----------------------------------Mi09MBA064
Huma Afzal-----------------------------------Mi09MBA065
Faiza Lateef-----------------------------------Mi09MBA067
MBA IRM 4th Semester

Session 2009-2011
ACKNOWLEDGMENTS
Great is Allah and great is His mercy. Who taught by the pen, taught
men what he knew not. It is through his boundless grace and infinite mercy that
we have been able to bring out this. Special praise is for our beloved Holy
Prophet (SAW) who is inspiration for all who seek knowledge and is symbol
of knowledge and complete guidance for humanity as a whole.
We do not have words to express deep gratitude and thanks to our

respected teacher and project supervisor MR. Liaquat Ali Khan who helped us
and encourage us in every possible way and took personal interest to complete
this in time. We also extend our sincere appreciation to all our friends and class
fellows.
Words are lacking to express obligations to our affectionate Parents

their love, good wishes, inspirations and unceasing prayers, without which
the present destination would have been mere a dream.
All our prayers and gratitude’s for them, who pray for us, help us, and
encourage us to achieve our goal.
Nida Asghar Faiza Lateef

Ansa Sahar
Sahar Arif
Amna Ijaz
Sameera Rasheed
Yasmeen Younas
Mehak Zahra
Huma Afzal
\
Summary____________________________________________________________________4
Introduction________________
 General Economic Review of Pakistan______________________________________5

 Insurance Industry Economic Review _____________________________________ 7
 History Of Reinsurance________________________________________________ 9
 History of Life Insurance Corporation ____________________________________11
 Nationalization_______________________________________________________13
 Products Of State Life Insurance Corporation ______________________________ 14
 Hypothesis__________________________________________________________25
 Research questions_______________________________________________27
 Objective of study________________________________________________36
 Methodological notes_____________________________________________37
 Source of Data__________________________________________________38
 Limitations of data_______________________________________________40
 Literature review_______________________________________________42
Data collection____________________________________________________________46
Data analysis____________________________________________________________48
Recommendation__________________________________________________________49
Conclusion ______________________________________________________________51
Bibliography_____________________________________________________________53
Dedication______________________________________________________________54

Executive Summary
We are given a Reinsurance Research Project by our respectable
teacher Mr. Liaquat Ali Khan. We decided to conduct a research project on State Life
Insurance Corporation of Pakistan. We collected the data from their website and also
through various interviews and annual report of State Life Insurance Corporation.
Analyzing the reinsurance arrangements of State life Insurance Corporation gave us
insight on their retention limit and the various contracts arrangement they have for
various classes of business. From this we concluded several points late in this report.
We studied the various reinsurance companies of which the State Life Insurance
Corporation had direct relation with and gave the related information in this report.
Furthermore we studied the various types and methods of reinsurance, adding on to it the
various products of Reinsurance Companies.
We visited State Life Insurance Corporation of Pakistan several times and learnt a lot
about their environment and found that the staff of State Life is very corporative.

General Economic Review of Pakistan
There is a slow growth in the economy of Pakistan. Global economy also remained
unstable due to financial market turmoil. Besides this, the International economy has also
hit by soaring inflation, particularly rise in prices of oil, food and other commodities.
These factors had its impact on economy of Pakistan which is already facing power
crisis, high fuel rates, softening of external demand and fluctuations in exchange rates.
With a new government coming to power in 2008, the need to adjust policies and counter
the burden on the fiscal position had become a challenging task. Fortunately the prices of
some of the major commodities which Pakistan imports have fallen. This is a favorable
influence on Pakistan Economy.
Like other stock markets the world over, Stock Exchanges of Pakistan also faced down
turn. Ultimately, the Karachi Stock Exchange imposed 'Floor Mechanism' on the closing
price of securities as on August 27, 2008, to prevent further fall in the stock prices. On
December 15, 2008 this floor was removed. The benchmark index immediately fell to a
two-and-a-half year low.
Inspire of these extraordinary conditions 2007-2008, Pakistan's economy recorded a growth of
5.8 percent, as against 6.8 percent 2006-2007 and this year's target of 7.2 percent. In the
medium-term perspective, Pakistan's growth performance is still striking, with real GDP growing
at an average rate of 7.0 percent per annum over the last five years (2004-08). The growth of this
magnitude not only shows its resistance but also provides a source of optimism that regaining the
growth momentum through reforms is very much a plausible assumption.

Insurance Industry–Economic Review
During the last 4 years, gross premium of General Insurance companies in Pakistan grew
by approximately 15% annually while the penetration of the sector reached 0.4% (Rs. 33
billion) of GDP by the end of 2007. The growth in the gross premium was mainly
attributable to the decent economic growth during this era.
According to an independent source, the gross premium of the General Insurance in
Pakistan is projected to end at Rs. 35 billion mark in 2008. While this would be a growth
of 6% over 2007, insurance penetration is projected to be lower at 0.33% at the end of
2008 versus that of 0.4% a year earlier. The decline in insurance penetration is
attributable to the overall economic slowdown, particularly to the bleak auto sector
performance.
Undoubtedly, the Motor segment has been regarded as the major growth propeller for the
insurance sector in last 5 years. This was mainly attributable to abundance financing
facilities and rise in personal income. The growth of the sector however, remained
stagnant in 2008 on the back of subdued car sales and industrial production. Moreover,
slowdown in the trade activities amid global economic crisis also affected the Marine
insurance. The insurance industry grew at a rate of 6% in CY09, the same rate observed
in the last 2 years. However the industry has a lot of room to grow, taking in account the

fact that the industry only represents 0.8 percent penetration rate ie insurance premium
represent only 0.8 percent, which is the lowest among the comparable countries.
The reason for a somewhat low performance can be associated with the emergence of
macroeconomic instability since late 2007, turmoil in global financial markets and
dislocation of the domestic equity market along with the deteriorating security situation,
posed substantial challenges to the sector in 2008.
Moreover, the year 2009 was a difficult year at both the local as well as the global
economic front. The global recession and the stagnant domestic economy during 2009
had an impact on the General insurance industry of Pakistan. The year 2009 was highly
volatile due to the worst global economic recession triggered by credit crisis. The country
s economy was also adversely affected by high inflation rate, severe liquidity crunch, a
steep decline in the value of Pak rupee and unfavorable conditions prevailing in capital
markets.
Another problematic factor for the insurance companies is the increase in the Reinsurance
rates by the major Reinsurance companies in the world. As reported in many international
journals the reinsurance companies have increased their rates due to growing demand of
Reinsurance and changing risk environment.

History of Reinsurance
There is nothing in the early history of insurance which suggests practices that approach
in any way our modern reinsurance procedure. The earliest reinsurances first appeared in
transport, especially marine insurance, at a comparatively late date (14 th or 15th century).
Marine insurance in antiquity was conducted chiefly by individuals, more or less in a
speculative manner, without a statistical foundation and without a retrospective data on
loss experience. Single ships and their cargoes in ancient times often had a value
disproportionately large to other private holdings, and the whole of the private fortune of
the insurer often hung on the outcome of a single voyage or marine adventure. The perils
of the sea were greater also considering the rudimentary state of the shipbuilder’s art.
It can readily be understood why marine underwriters wanted someone to share their risk.
After having effected insurances whether on the ship, on the cargo or on both, or on the
lives of the captain and crew, an underwriter often would become worried and try to sell
parts of his contracts to others and necessarily at a higher rate. At first risks on parts of
voyages were assigned to other, usually the more dangerous parts.
First Reinsurance Contract:

The first reinsurance contract on record related to the year 1370, when an underwriter
named GUILANO GRILLO contracted with GOFFREDO BENAIRA and MARTINO

SACEO to reinsure a ship on part of the voyage from the GENOA to the harbor of
Bruges.
Other arrangements of this kind were no doubt, made in single instances for many years,
but reinsurance contracts in the modern sense of the world were unknown.
Development of Reinsurance:
The development of reinsurance in the modern sense may be credited chiefly to the fire
insurance business. Following the industrial revolution of the last third of the eighteenth
century, the growth of the factory system gave rise to the existence of things and interest
which rendered insurance in large amounts. Reinsurance developed slowly at first.
Insurers of fire risks had, until the amounts of insurance requested became too great,
adopted the practice of charging different premium for different classes of risk and by
limiting their commitments in certain areas.
The First Independent Reinsurance Company:
In 1846, the first reinsurance company was founded in Germany. THE COLOGNE
REINSURANCE COMPANY, this was the idea of MEVISSEN. He held that an
independent reinsurance company would be no competitor of the direct writing
companies and it was certain to be welcomed by and to receive a good volume of
business from those companies.
This marked the establishment of reinsurance as a specific, independent branch of the
business and thus extended to today’s form.
10 | P a g e Hailey College of Banking& Finance

HISTORY OF STATE LIFE
INSURANCE CORPORATION OF
PAKISTAN

History of Life Insurance in Pakistan
At the time of independence of Pakistan in 1947, the number of insurance companies operating
in Pakistan was limited. Some of them had both life and general department. Some foreign
companies were also operating and different agency systems including the general agency were
being used. Some companies had their head office in cities, which were left in territories now
forming parts of India, and thus their operations in areas forming Pakistan were wound up. The
remaining companies both local and foreign were left in the market and they strived to spread the
message of life insurance in their own way. Their agency structures, commission rates, premium
and bonus rates and policy contracts varied. In quarter of a century after the emergence of
Pakistan, the number of companies rose to 32. Each company had its own working pattern and
agency system. The number of field management tiers was also different in different companies

Nationalization of Life Insurance
The life insurance business in Pakistan was natona1ized under a Presidential Order on 19th
March. 1972. It was executed in two stages.
In the first stage which covered the period 19th March to 31st October. 1972, the management of
32 life insurance companies was taken over by the Government. Trustees and sub-trustees were
appointed by the Government to takeover different companies and to co-ordinate and guide their
activities. The Government constituted Life Insurance Management Board (LIMB). The Boards
terms included the task of recommending a permanent set up of life insurance within the
framework of nationalization. The Board recommended establishing a single Corporation with
three units.
The second phase of nationalization started by establishment of Single Corporation called State
Life Insurance Corporation of Pakistan with 3 Units called A, B, and C Beema* Units operating
throughout Pakistan and competing with one another.
On October 1975, the 3 Units merged and different zones were created. Initially there were five
zones with their Zonal Offices at Karachi, Hyderabad, Lahore, Rawalpindi and Peshawar. The
figure has since Increased to 26 Zones less than four different Regions, South, Central, North and
Multan headed by very able and competent executives.
By the grace of Allah the almighty, State Life has made steady progress in all fields of its
operations. The future is even brighter as the Corporation is making very positive strategies for

not only maintaining its market leadership but displaying beyond an doubt that it deserves the
matchless corporate image created during the last more than three decades.
PRODUCTS OF STATE LIFE INSURANCE

CORPORATION
State Life Insurance Company provides cover to their customers under two categories:
 Individual life plans
 Group life and pension plans

INDIVIDUAL LIFE PLANS
Individual life plans include the following covers:
 Whole Life Assurance:

It is a unique combination of protection and savings at a very economical premium. Death at any
time before age 85 years terminates payment of premiums and the sum insured and attached
bonuses become payable. In the event the insured survives to the policy anniversary at age 85
years, the policy matures and the sum insured plus bonuses become payable. Under this plan the
rates of bonuses are usually much higher than the other plans and they help in increasing not
only protection but also the investment element of the policy substantially.
This plan is best suited for youngsters who have at initial stages of their careers and cannot
afford to pay high premiums. Individuals who anticipate requirement of a lump sum in far future
can also opt this plan.
 Endowment Assurance:
It’s a safest and surest method of guaranteed cash provision either at a specified time or at death
(Allah forbid). Under these policies, the sum insured plus bonuses are payable at the end of the
specified number of years or at death of the life insured if earlier. Premiums are payable for the
specified number of years or till death, if earlier. The benefits under the plan can be further
increased by attaching supplementary covers.
The plan serves the requirements of a family in various shapes by way of financial help at
retirement, education of children or provision of capital for business.
 Sadabahar Plan:
Sadabahar is an anticipated endowment type with-profit plan that provides lump sum benefit at
certain stages during the premium-paying term or on earlier death. In addition, this plan has a
built-in Accidental Death Benefit (ADB) rider so that the policyholder gets an additional sum
assured in case of death due to an accident.
This plan is a safe instrument for cash provision at the time of need. With this plan, the
policyholder can secure greater protection and continued prosperity for the family at an
affordable cost.
Admissible Ages and Terms this plan is available to all members of the general public, aged
from 20 to 60 years nearest birthday. Both males and females may purchase this plan. Terms
offered under this plan are 12, 15, 18, 21, 24, 27 and 30 years.


Anticipated Endowment Assurance:

This is a modified form of endowment assurance and is also called ‘Three Payment Plan’.
Besides fulfilling the long-term financial needs, it also helps in meeting the short-term financial
exigencies. As the name suggests, the plan offers three payments throughout term of the policy.
The plan offers survival benefits equal to 25% of sum insured on completion of 1/3rd and 2/3rd
term of the policy. If the policyholder does not withdraw the survival benefits, a very attractive
special reversionary bonus is available. On completion of term of the policy, the remaining 50%
sum insured plus accrued bonuses shall be payable. If the life insured expires during term of the
policy, sum insured, accrued bonuses, unclaimed survival benefits and special reversionary
bonuses are payable.
The plan is suitable for the individuals who have long-term financial needs but also anticipate
requirement of money relatively earlier. This Payment Plan helps fulfilling these short-term
financial needs without terminating the actual contract.
 Shad Abad Assurance:

Shad Abad Plan is an extended form of endowment assurance. The benefits under the policy
increase manifold in the event of death of the life insured.

On completion of term of policy, sum insured plus
bonuses attached to the policy are payable. However, on
death during the policy term, the death benefit
consists of double of sum insured with accrued
bonuses. Incase of death due to accident, the death
benefit consists of four times the sum insured plus
bonuses. The coverage can be further widened by
attaching supplementary covers with the policy.
This plan meets the requirements of those who

appreciate the basic savings purpose of endowment
assurance but also like some additional cover to
protect loved ones in case they die, Allah forbid,
before maturity.
 Jeevan Sathi
Assurance:
This is a joint life plan and covers lives of two partners say husband and wife simultaneously.
Premiums are payable till the end of the specified term or till death of either of the insured
persons, if earlier. The plan contains
extensive benefits; an overview of which
appears as under:
On the death of the first life, the sum insured

will be paid to the survivor. Further
premiums under the policy will be
waived, but the insurance protection of the
second life will continue. Also, the policy
will continue to participate in profits of the
Corporation. On death of the second life,
again the sum insured will be paid
together with the attaching bonuses. In this
event the policy will terminate.
If the second life survives the term of the

policy, he or she will be paid sum insured together with the attached bonuses, even though the
sum insured has been paid once, on the death of the first life. If both the lives survive the term of
the policy, the sum insured will be paid to them jointly, only once, together with the attached
bonuses. Different supplementary covers are also available for increasing coverage under the
policy.

Jeevan Sathi Plan is best suited for those married couples who want to enjoy insurance coverage
for a comparatively lesser premium. Moreover, housewives who are otherwise not insurable can
also enjoy the benefits of insurance policy through this plan.
 Child Education & Marriage Assurance:

Child Education & Marriage Assurance is a plan for the protection of child’s future. It provides a
lump sum benefit for the child at the completion of the policy term. On completion of term of the
policy, full sum insured together with the accrued bonuses become payable to the policyholder.
If the policyholder dies (Allah forbid) before completion of the term, a family income benefit of
Rs 240 per 1000 sum insured per annum is paid to the child until the completion of policy term.
Further, future premiums under the policy are waived
and policy remains in force with full sum insured and
continues to participate in State Life’s surplus and
receive bonuses. Upon the completion of policy term,
the child gets two options of either getting the proceeds
in a lump sum or in five equal installments.
Child Education & Marriage Plan is suited for the

parents who are conscious about the future of their
children. The term of the plan is such that the lump sum
benefit becomes payable when the child attains a
predetermined age of 18, 21 or 25 years. These ages
may be selected considering the occasion at which
children generally need financial assistance for higher
education, marriage, or setting up business. Depending
upon your individual needs, the plan is available in two
separate versions of with and without built-in family income benefit. In addition to parent, this
plan can also be affected by grandparents, uncles, aunts or any other person who is paying for the
maintenance of the child
 Child Protection Assurance:

This is a joint life assurance and covers the lives of child and either of the parents. If the
policyholder and the child both survive full term of the policy, sum insured and accrued bonuses
become payable. If the policyholder dies before completion of term of the policy the payment of
premiums ceases and the child is paid an income of Rs 100/- per thousand sum insured per
annum till the completion of the policy term. On completion of policy term, sum insured
inclusive of bonuses accrued till the death of the policyholder is paid to the child.
If the child dies (Allah forbid) before maturity of the policy and during lifetime of the
policyholder, the death claim payable to the policyholder depends on the age at death of the
child.

As the name suggests, the plan is suitable for parents who want to cater future financial needs of
their children incase of death of the breadwinner of the family. The plan has a unique feature of
providing coverage on the life of child. The coverage of the policy can further be widened by
attaching supplementary covers.
 Sunehri Policy:
Sunehri Policy is an innovative life insurance product. It is flexible, secure and meets the
challenges of inflation quite economically. Under a special feature of this plan, from third policy
year onwards, sum insured under the policy and premium will increase by 6% per annum without
providing any evidence of insurability. From the third policy year onward, the policyholder is
provided with a statement showing the build up of cash value of the policy and sum insured for
the year. The policy also participates in the surplus of State Life and currently the rate of bonus
is Rs 105 per thousand per annum of the adjusted opening cash value.
Death Benefit: If the life insured dies during first two years of policy issue, then the initial basic
sum insured will be payable. If the life insured expires in third or later policy years, the death
benefit payable will be equal to sum insured applicable to the policy year of death plus adjusted
opening cash value.
Maturity Benefit: Policy matures on policy anniversary nearest to age 70 years of the life
insured. The maturity benefit equals to cash value of the policy at age 70.
The plan is suitable for individuals who have started their career and expect increase in their
income over a certain period of time say a year or two. The increase in premium and sum insured
helps them to meet their increased insurance requirement with increase in incomes.
 Shehnai Policy:
Shehnai Policy is an innovative life insurance product. It provides a solution to the problems of
many concerned parents who want to save now in order to provide for their children’s higher
education, marriage and other expenses when the need arises. The term of the plan is such that
the lump sum benefit becomes payable as the child attains the age of 25 years.
Shehnai Policy also caters from the ravages of inflation. This is done by the option of automatic
increase of 6% per annum in sum insured and premium from third policy year onward. From the
fourth policy year onward, the policyholder is provided with a statement showing the build up of
cash value of the policy and sum insured for the year. The policy also participates in the surplus
of State Life and currently the rate of bonus is Rs 105 per thousand per annum of the adjusted
opening cash value.
Maturity Benefit: The policy matures when the child attains age 25 years. At maturity the cash
value of the policy is paid to the child. The cash value includes all the bonuses attached with the
policy.

Death Benefit: If the life insured dies during term of the policy, premium payments stop and the
sum insured applicable to the policy year of death is deferred to be payable when the child
attains age of 25. At the time of death of the life insured, the said sum insured is added to the
‘adjusted opening cash value’ to be called the ‘enhanced cash value’ and participates in State
Life’s surplus until it is paid out to the child when he or she attains the age of 25 years. The child
will have an option of either collecting the benefit in a lump sum or in five equal annual
installments.
 Optional Maturity Endowment:

It is an endowment assurance with a built in option to mature early. The plan is available for
individuals aged 20 to 45 years. The policyholder has following options regarding maturity of
this plan.
 After the policy has been in force for 20 years or more, the policyholder gets an option to
mature the policy for a proportionately reduced sum insured.
 After the policy has been in force for 20 years or more, the policyholder, depending on
his or her needs, can mature the policy in parts.
 Let the policy mature at originally selected term. In this case the policyholder gets an
additional bonus.
The policy participates in bonuses declared by State Life from time to time. Please click here for
details of bonuses currently available for this plan. Coverage under the policy can also be
enhanced by attaching supplementary covers.
 Nigehban Plan:
This plan provides term insurance cover for a period ranging from 5 to 10 years.
As the name suggests, this plan is meant to provide protection during the term of the policy only
i.e. sum insured is payable on death if it occurs during the term of insurance while the policy is
in force. The plan does not carry any survival benefits, maturity benefits, surrender values, loan
values etc. The policies will be without profits.
The plan is available in two versions namely, with single premium and with annual premiums.
Attaching certain supplementary covers can widen the coverage under the plan.
 Muhafaz Plus Assurance:

Muhafiz Plus provides a substantial sum of money on maturity or earlier death (Allah forbid) of
the life insured. On maturity, the policyholder will receive sum insured plus bonuses attached
with the policy.
However if the life insured dies before completion of term of the policy, basic sum insured plus
attached bonuses will be paid to the dependants immediately. In case of death due to accident,
the double of the sum insured is paid. In addition, the dependents will also be paid an income of
Rs 240 per thousand sum insured per annum for a fixed period of 15 years. The first payment
will fall due on the policy anniversary immediately after the death of the life insured.
 Supplementary Covers:
State Life offers a number of supplementary covers to enhance coverage under different plans.
These supplementary covers can be attached with the main policy and are not available
exclusively.
Accident Death & Indemnity Benefit (AIB):

This supplementary cover provides for payment of additional amount equal to the sum insured
under the policy in the event of death by accidental means, or in the event of loss of two or more
limbs or loss of sight in both eyes. One-half of the sums insured will be paid for loss of one limb;
one-third of sum insured in the event of loss of one eye and one-fourth of sum insured will be
paid for loss of thumb and index finger. Moreover, weekly indemnities are also available for
total and partial disability of the life insured as a result of the accident. If the life insured
becomes permanent and total disable, an annuity of 10% of sum insured will be payable for a
maximum period of ten years.
AIB is suitable for office commuters and individuals who travel and use different modes of
transport. The rates of premium for this supplementary benefit range from Rs 4 to Rs10 per
thousand sum insured depending upon the occupational rating of proposer for standard lives
whose age should be between 18 to 55 years.
AIB can be attached with following plans:
 Whole Life Assurance

 Endowment Assurance
 Anticipated Endowment Assurance
 Jeevan Sathi Assurance
 Child Education & Marriage Assurance
 Shad Abad Assurance
 Shehnai Policy
 Child Protection Assurance (For adult life only)

 Muhafiz Plus Assurance
 Nigehban Plan
 Optional Maturity Plan
Accidental Death Benefit (ADB):

This supplementary cover will provide for payment of an additional amount equal to sum insured
in the event of death by an accident as defined in the contract. On payment of a modest premium,
a handsome accidental coverage is obtained through this supplementary cover. ADB is highly
recommended for individuals who travel daily through road transport.
The cover is available to lives between 5 and 55 years of ages. Maximum term of this
supplementary benefit is not allowed to exceed the premium paying term of the basic policy, or
60 years of age of the life proposed whichever is earlier.
ADB can be attached with following plans:
 Whole Life Assurance

 Endowment Assurance
 Anticipated Endowment Assurance
 Jeevan Sathi Assurance
 Child Education & Marriage Assurance
 Shehnai Policy
 Child Protection Assurance
 Muhafiz Plus Assurance
 Nigehban Plan
 Optional Maturity Plan
Family Income Benefit (FIB):

This supplementary cover provides that incase of death of the life insured during term of this
cover, an annuity of 10% to 50% per annum of the basic sum insured will be payable till the
completion of term of this cover. For instance, if a life insured has taken 25% FIB supplementary
cover for 20 years on his policy having sum insured of Rs 1,000,000. If the life insured expires
during term of FIB, say at the end of fourth year, an annual sum of Rs 250,000 will be payable
for rest of 16 years.
While the basic plan provides a lump sum, FIB provides a regular stream of income to the
dependents and helps in meeting the day to day expenses. This supplementary cover is available
to lives between 18 and 55 years of ages
Waiver of Premium (WP):

This supplementary cover provides for waiver of due premiums in the event of the life insured’s
Total and Permanent Disability caused by accident as defined in the contract. With the help of
WP, the life insured gets relieved of vagaries of paying premiums incase of his or her being
incapacitated as a result of accident. The rate of premium for standard risk will be Rs 0.50 to
1.00 per thousand of sum insured depending upon the age of life insured.
WP is available to lives between 18 and 55 years of ages.
Special Waiver of Premium (SWP):

This supplementary cover will provide for waiver of premiums under the policy incase of the life
insured’s Total and Permanent Disability due to accident or disease which renders him unable to
engage in any occupation.
With the help of SWP, the life insured gets relieved of vagaries of paying premiums incase of his
or her being incapacitated as a result of accident or disease. SWP is available to lives between 20
and 55 years of ages
Term Insurance (TI):

In the event of death of the life insured during term of TI supplementary cover, the sum insured
will be payable in addition to the benefits payable under the basic policy. Suppose, Mr. A,
covered under a policy of Rs 1,000,000, and also attaches TI supplementary cover with his
policy. Incase of his death during term of TI, a sum equal to Rs 1,000,000 will be payable under
this supplementary cover. This will be in addition to the benefits payable under main policy.
This supplementary cover is an excellent opportunity for individuals who want to enhance
coverage of their policy substantially on payment of a meager amount of premium. TI is
available to lives between 18 and 55 years of age. Shad Abad Assurance
Guaranteed Insurability (GI):

Under this supplementary cover, State Life gives the policyholder a right to purchase additional
life insurance up to specified maximum amounts on specified further dates at standard rates,
without evidence of insurability being required at such later dates.
The specific further dates on which additional insurance can be taken are the policy anniversaries
of the basic policy nearest the 25th, 28th, 31st, 34th, 37th and 40th birthdays of the life insured.
Thus the option dates for various issue ages
Issue Ages No of Option Dates Option Date Ages

10 – 24 6 25, 28, 31, 34, 37, 40
25 – 27 5 28, 31, 34, 37, 40
28-30 4 31, 34, 37, 40
31-33 3 34, 37, 40
34-36 2 37, 40
37 1 40
This supplementary cover is available only to standard lives between 10 and 37 years of ages and
who are not engaged in hazardous occupations. Only one GI will be issued on the life of any one
person. GI is available only at the time of issue of the basic policy and can not be attached to the
policy after its issuance.
Refund of Premium Rider (RPR):

RPR provides for refund of premiums paid under the policy in the event of death of the life
insured during term of the policy. It is an ideal form of enhancing the life cover under the policy
with a modest increase in premium.
This supplementary cover is available to lives between 20 and 60 years of ages. The available
term ranges from 10 to 25 years
Hospital and Surgical Benefits (H&S):

This supplementary cover provides benefits in case of hospitalization of the life insured, in State
Life’s approved hospitals, as a result of sickness or accident. On payment of double amount of
premium specified for H&S, the benefits and their limits will also be doubled.
H&S is available to lives between 18 and 50 years of ages. The available term ranges from 10 to
25 years.

We are able to significantly enhance our big
business all the way through betterment in
PUBLIC RELATIONS (PR) * which includes
product promotion through advertisements.

Research Questions:
1. What are the reinsurance arrangements of this State life Insurance
Corporation?
 The corporation maintains the risk premium re-insurance

arrangements with Swiss Re and Munich Re-insurance.
2. What is the retention limit of the corporation for individual life per
policy?
 The net retention limit of the corporation for individual life is

Rupees 2.5 Million per policy.
3. What is the retention limit of the corporation for group life insurance
policy?
 The net retention limit of the corporation for group life is Rs 2

Million per person of risk.
4. How the reinsurance premium is recorded by the corporation?
 Re-insurance premium is recorded as an expense evenly over the

period of the re-insurance contract and is off-set against the premium
income of the respective year.
5. Is State life Insurance Corporation is using facultative and treaty
reinsurances?
 State Life Insurance Corporation is currently using both facultative

and treaty reinsurances.
6. Is State Life Insurance Corporation itself is also accepting reinsurance
from other companies or not?

 No, State life Insurance Corporation itself do not accept reinsurance
form other companies. It only transacts the insurance business.
7. Is State Life Insurance Corporation reinsures specific classes of
Business?
 State Life Insurance Corporation has reinsurance arrangements for

all classes of business.
8. Is the present Reinsurance Arrangement adequate or it needs some
changes or improvements?
 At present the Reinsurance arrangement of State Life Insurance

Corporation needs no changes and improvements. It is yet adequate.
9. Why did State Life Insurance Corporation chose Swiss-Re and
Munich-Re Insurance Companies as for their reinsurance
arrangements, why didn’t they choose any Local Reinsurance
Company for the same?
 As State Life Insurance Corporation is the biggest insurance

corporation of Pakistan, it is necessary for the insurance company to
reinsure from a company whose size of business is much more than
the insurance company wanting to reinsure. Thus State Life chose
Swiss-Re and Munich-Re insurance Company for reinsuring
purposes.

Swiss Reinsurance Company Limited :
History:
The Swiss Reinsurance Company of Zurich was founded on 19 December 1863 by the
Helvetia General Insurance Company (now using the trade name of Helvetia insurance)
in St. Gallen, the Schweizerische Kreditanstalt (Credit Suisse) in Zurich and the Basler
Handelsbank (predecessor of UBS AG) bank in Basel.
On 10/11 May 1861, more than 500 houses went up in flames in the town of Glarus. Two
thirds of the town sank into rubble and ashes; around 3000 inhabitants were made
homeless. Like the fire of Hamburg in 1842 (which led to the foundation of the first
professional reinsurers in Germany, the great fire of Glarus in 1861 showed that
insurance coverage was totally inadequate in Switzerland in the event of such a
catastrophe. Hence the need to provide more effective means of coping with the risks
posed by such devastation.
The Swiss Reinsurance Company was the lead insurer of the World Trade Center during
the September 11 attacks which led to an insurance dispute with the owner, Silverstein
Properties.
In 2009, Warren Buffett invested $2.6 billion as a part of Swiss Re's raising equity
capital.[5][6] Berkshire Hathaway already owns a 3% stake, with rights to own more than
20%.
The group have offices in over 20 countries. In Europe, Swiss Re have offices located in
Denmark, France, Germany, Italy, Luxembourg, Netherlands, Slovak Republic, Spain,
Switzerland and the United Kingdom. In Asia, the group have offices in the following
countries: Australia, China, Hong Kong, India, Israel, Japan, Malaysia, Singapore, South
Korea. Their only African office is located in South Africa. There are also offices in the
following American countries: Barbados, Brazil, Canada, Mexico, United States.
(US$1.18 billion) to a group formed of IVG Immobilien AG of Germany and Evans
Randall of Mayfair.
Reinsurance Products:
Swiss Reinsurance Company Ltd provides reinsurance products, insurance-based capital
market instruments, and risk management services worldwide. It offers various
reinsurance products covering property, liability, motor, and accident risks; life and
health risks comprising individual and group life, disability, critical illness, and annuity
products; and specialty risks, such as engineering, aviation, and marine. The company
also provides risk transfer solutions; manages corporate credit and equity portfolios; and
offers office space and apartments for rent. In addition, Swiss Reinsurance Company

provides Admin Re, a solution through which the company acquires closed blocks of in-
force life and health insurance business through acquisition or reinsurance, and assumes
responsibility for administering the underlying policies. It serves insurers, corporations
and businesses, brokers and agents, and governments and NGOs. The company was
founded in 1863 and is headquartered in Zurich, Switzerland.
Products and Services:

Products:
Reinsurance:
Property & Casualty Reinsurance
Life & Health Reinsurance
Agricultural reinsurance
Aviation & Space
Engineering
Marine
Nuclear energy
Insurance:
Commercial Insurance
Industrial Risk Insurer (IRI)
Admin Re
Financial Markets
Real Estate
Carbon Credit Fund
Services:
Client services and tools
E-business
Asset Management
Consulting
Insurance Research
1.Property
The Property teams of Swiss Re provide innovative, tailor-made coverages to
corporations across the globe. Leveraging the Swiss Re Group's diversified portfolio,
financial strength and underwriting expertise, highly-skilled and experienced teams offer
the customers among the highest capacity available in the marketplace, as well as
unparallel expertise on structured property programmes.
From insuring automotive operations to valuable cargo to protecting assets of financial
institutions, their experts have a specific solution that suits the business needs.

Our Property teams offers
 General Property
 Excess & Surplus Property: U.S.
 Satellite Hull Insurance
 Airline Hull Risk
 Airline Manufacturer Coverage
 Outage Risk Solutions
 Commercial Crime
 Comprehensive Crime Coverage
 Contingency Coverages
 Fine Art & Specie Coverage
 Single Carrier
2.Casualty
The Casualty teams of Swiss Re provide innovative, tailor-made coverages to
corporations across the globe. Leveraging the Swiss Re Group's diversified portfolio,
financial strength and underwriting expertise, our highly-skilled and experienced teams
offer our customers among the highest capacity available in the marketplace, as well as
unparallel expertise on structured casualty programmes.
From insuring automotive manufacturing to providing lead umbrella policies to covering
engineers' fees and damages when they are legally responsible, their experts have a
specific solution that suits their business needs.
Our Casualty teams offer
 General Casualty
 Excess & Surplus Casualty: U.S.
 Lead Umbrella: U.S.
 Construction Professional Indemnity & General
Liability
 Technology E&O
 Outage Risk Solutions
 Weather and Commodity Price Risk Solutions
3.Professional & Management Liability

The Professional & Management Liability products of Swiss Re provide financial
protection for organisations and their executives, as well as other professionals, against
allegations of wrong-doing, mismanagement, negligence, and other related exposures.
Backed by the diversified portfolio and financial strength of the Swiss re Group, they
provide high-quality protection to thousands of companies, financial institutions, not-for-
profit and healthcare organisations through their customer-oriented approach, innovative
products, loss control expertise, global breadth and local presence.

Our Professional & Management solutions for organisations, executives &
professionals
 Directors & Officers Liability
 Fiduciary Liability
 Employment Practices Liability
 Lawyers Professional Liability (Large U.S. Law Firms)
 Lawyers Professional Liability (Small/Medium-Sized
U.S. Law Firms)
 Lawyers Professional Liability (Large Law Firms
Worldwide, excluding the U.S.)
 Lawyers Professional Liability - Risk Management
Alert for Florida Insurance Defense Attorneys
 Professional Indemnity for Accounting Firms,
Management & Actuarial Consultants
 Professional Indemnity for Financial Institutions
 Technology E&O
 Construction Professional Indemnity & General
Liability
 Healthcare Liability

Munich Reinsurance Company
History:
In 1880, Carl von Thieme, a native of Erfurt, whose father was the director of Thuringia,
foundedMünchener Rückversicherungs-Gesellschafttogether with Wilhelm von Finck
(co-owner of the Merck Finck & Co bank) and Theodor von Cramer-Klett. This was
followed by the founding of Allianz Versicherungs-Gesellschaft in 1890. Carl von
Thieme was head of Munich Re until 1921, and Wilhelm von Finck served as Chairman
of the supervisory board until 1924. Munich Re became renowned after the San Francisco
Earthquake of 1906 as the only insurer that remained solvent after paying out all the
claims.
Structure:
Besides its reinsurance business, the Munich Re Group also transacts primary insurance
business through the ERGO Group, and, since 1999, asset management through MEAG
(MUNICH ERGO AssetManagement GmbH). In 2010, the Group’s gross premiums
written totalled around €45.5bn.
Reinsurance:
Munich Re has around 5,000 clients (insurance companies) in about 150 countries. It
assumes part of the risk covered by these insurance companies, as well as providing
comprehensive advice on insurance business. In addition to its Munich head office,
Munich Re has more than 50 Business Units around the world. Munich Re provides
reinsurance cover for life, health, casualty, transport, aviation, space, fire and engineering
business. In 2010, gross premiums written in the reinsurance segment amounted to
around €23.6bn.
Spectrum of Reinsurance Services:

From casualty and property to special fields such as marine and aviation, they work hard
to ensure that their clients’ success by offering reinsurance solutions, analysis and
consulting services as well as software tools that are vital to their business. Apart from
the tailored solutions Munich Re provide, the main reasons clients turn to Munich Re are
our global expertise, financial strength and reliability.

Lines of Business
Casualty
Property
Marine
Special Lines
ReTakaful by Munich Re
Munich Re’s retakaful unit is a fully-fledged retakaful operator licensed by Bank Negara
Malaysia in December 2007 to conduct worldwide general (non-life) and family (life)
retakaful business. Based in Kuala Lumpur, Malaysia we are set up to be Munich Re's
international retakaful hub.
In line with AAOIFI standards Munich Re is operating on a pure wakala model for both
family and general retakaful.
Munich Re addresses the specific needs of Islamic societies by using the Group’s
exceptional technical expertise in providing viable techniques to implement the rules set
by Shari’a-scholars. This not only fosters mutually profitable growth in local markets, but
also benefits the development of the global takaful industry. In addition, our clients profit
from the excellent financial solidity and the technical expertise of the Munich Re Group.
Munich Re’s retakaful unit in Kuala Lumpur operates as a branch of Munich Re and has
full and unconditional financial backing from Munich Re. The latest ratings clearly
demonstrate that we are one of the financially strongest retakaful operators worldwide.

Objectives of Study
1. Objective of study are to have appropriate and practical knowledge of
reinsurance.
2. To know, how insurer seek reinsurance.
3. What are the parameters on which the reinsurance is sought.
4. Whether insurer are willing to seek proportional or non proportional
reinsurance according to their needs and for what kind of classes of
business.
5. Having this study of the insurance company the research will help while we
are working in the same company.

Methodological Notes:
For collecting data these methods are used:
1. Interviews
Interviews were taken from:
 Central Zonal head
2. Internet
Data of State Life Insurance Corporation, Swiss Re and Munich Reinsurance Company
was collected from their respective websites.
3. Annual Report
Annual report was taken from the central regional office of stat life insurance corporation
Lahore Pakistan.

Sources Of Data

Sources of data:
Two sources of data were used to collect material:
1. Primary data
2. Secondary data
 Primary data:
State Life Insurance Corporation’s Annual report.
 Sites:
www.statlife.com.pk
www.swissre.com
www.munichre.com/
www.casact.org/pubs/proceed/proceed29/29022.pdf
www.marclife.com/publications/History%20of%20reinsurance.
 Secondary Data:
Interviews.

Limitation of Data

Limitation of data
Level of risk:
As stat life is nationalized organization so they suffer many limitation such as limited budget due
to which many corporate and marketing strategies adopted by state life fail to give expected
results.
Amount of variation in the possible results:

State life has certain successful marketing strategies but some time they face sudden changes in
their business due to instability of politics and inflation of economy and also advancement in
technology is given them tough time.
Rigid policies of government:

Stat life also suffer due to rigid policies like in case of recruitment their hiring new employees
after a long period of time and their staff is not educated, less professional and are not passionate
about their work. The problem in their employee is that there is no fear of losing job, because of
long procedure of firing.
Reaction of competitive:
As it’s a business strategy to do some thing better then the competitor. So if State Life starts
introducing some new plans to the promotion sector the competitors also start some thing and
probably better then them.

Literature Review

Reinsurance Types:
Proportional
Proportional reinsurance (the types of which are quota share and surplus reinsurance)
involves one or more reinsurers taking a stated percent share of each policy that
an insurer produces ("writes"). This means that the reinsurer will receive that stated
percentage of each dollar of premiums and will pay that percentage of each dollar of
losses. In addition, the reinsurer will allow a "ceding commission" to theinsurer to cover
the initial costs incurred by the insured (marketing, underwriting, claims etc.).
The insurer may seek such coverage for several reasons. First, the insurer may not have
sufficient capital to prudently retain all of the exposure that it is capable of producing.
For example, it may only be able to offer $1 million in coverage, but by purchasing
proportional reinsurance it might double or triple that limit. Premiums and losses are then
shared on a pro rata basis. For example, an insurance company might purchase a
50% quota share treaty; in this case they would share half of all premium and losses
with the reinsurer. In a 75% quota share, they would share (cede) 3/4 of all premiums and
losses.
The other form of proportional reinsurance is surplus share or surplus of line treaty. In
this case, a retained “line” is defined as the ceding company's retention - say $100,000. In
a 9 line surplus treaty the reinsurer would then accept up to $900,000 (9 lines). So if the
insurance company issues a policy for $100,000, they would keep all of the premiums
and losses from that policy. If they issue a $200,000 policy, they would give (cede) half
of the premiums and losses to the reinsurer (1 line each). The maximum underwriting
capacity of the cedant would be $ 1,000,000 in this example. Surplus treaties are also
known as variable quota shares.
Non-proportional
Non-proportional reinsurance only responds if the loss suffered by the insurer exceeds
a certain amount, which is called the "retention" or "priority." An example of this form of
reinsurance is where the insurer is prepared to accept a loss of $1 million for any loss
which may occur and they purchase a layer of reinsurance of $4 million in excess of $1
million. If a loss of $3 million occurs, then insurer will retain $1 million and will recover
$2 million from its reinsurer(s). In this example, the reinsured will retain any loss
exceeding $5 million unless they have purchased a further excess layer (second layer) of
say $10 million excess of $5 million.
The main forms of non-proportional reinsurance are excess of loss and stop loss.
Excess of loss reinsurance can have three forms - "Per Risk XL" (Working XL), "Per
Occurrence or Per Event XL" (Catastrophe or Cat XL), and "Aggregate XL". In per
risk, the cedant’s insurance policy limits are greater than the reinsurance retention. For
example, an insurance company might insure commercial property risks with policy
limits up to $10 million, and then buy per risk reinsurance of $5 million in excess of $5
million. In this case a loss of $6 million on that policy will result in the recovery of $1
million from the reinsurer.
In catastrophe excess of loss, the cedant’s per risk retention is usually less than the cat
reinsurance retention (this is not important as these contracts usually contain a 2 risk
warranty i.e. they are designed to protect the reinsured against catastrophic events that
involve more than 1 policy). For example, an insurance company issues homeowner's
policies with limits of up to $500,000 and then buys catastrophe reinsurance of
$22,000,000 in excess of $3,000,000. In that case, the insurance company would only
recover from reinsurers in the event of multiple policy losses in one event (i.e., hurricane,
earthquake, flood, etc.).
Reinsurance Methods:
There are two basic methods of reinsurance:
1. Facultative Reinsurance
In facultative reinsurance, the ceding company cedes and the reinsurer assumes all
or part of the risk assumed by a particular specified insurance policy. Facultative
reinsurance is negotiated separately for each insurance contract that is reinsured.
Facultative reinsurance normally is purchased by ceding companies for individual
risks not covered by their reinsurance treaties, for amounts in excess of the
monetary limits of their reinsurance treaties and for unusual risks. Underwriting
expenses and, in particular, personnel costs,are higher relative to premiums
written on facultative business because each risk is individually underwritten and
administered. The ability to separately evaluate each risk reinsured, however,
increases the probability that the underwriter can price the contract to more
accurately reflect the risks involved.
2. Treaty Reinsurance

It is a method of reinsurance requiring the insurer and the reinsurer to formulate
and execute a reinsurance contract. The reinsurer then covers all the insurance
policies coming within the scope of that contract. There are two basic methods of
treaty reinsurance:
 Quota Share Treaty Reinsurance, and

 Excess of Loss Treaty Reinsurance.
In the past 30 years there has been a major shift from Quota Share to Excess of
Loss in the property and casualty fields.

Data Collection:
Before selecting and collecting data first we decided on

which fields we have to work being State Life Insurance
Corporation:
E.g. we work on the answers of the following questions:
1. Is it necessary for me to reinsure or its better the other way around?
2. How much of the amount should I retain and how much should I reinsure?
3. Should I reinsure some specific classes of business or should I reinsure all
classes of business?
4. Should I reinsure locally?? If no then what are the reasons for reinsuring from a
foreign companies?
5. Should I choose only one company for reinsuring or choose more than one
reinsurance company?
6. What would be the procedure as a consequence of a claim arising from through
reinsurance contract?
7. Should I reinsure Facultatively or should I go for treaty reinsurance?

Data Analysis:
An Analysis of the above data reveals the following:
1. There is a tremendous potential to be exploited relating to the development
of insurance sector of Pakistan.
2. Similarly, there is a tremendous potential to be exploited relating to the
growth and development of the concept of reinsurance sector of Pakistan.
3. Stakeholders moot is needed to develop a marketing strategy and promoting
reinsurance Culture in Pakistan.
4. There should be a Specialized Reinsurance company locally available
having a larger capital than the other insurance companies of Pakistan, as in
this way the reinsurance business will groom here Locally moreover it will
be a cost effective way for the reinsured.

RECOMMENDATIONS:
IF WE HAVE TO MPROVE OUR BUSINESS WE HAVE TO STRONGLY WORK
ON FOLLOWING:-
1- Customer Relationship Management and Consumer Protection

in Life Insurance Product;
2- Dimensions of Service Quality ;
3- Poor Service Attributes
4- Improve your retention rates
Reversing the Market
 Consumers involved & drives decision making.

 Market moves to efficient providers.
 Need for intermediation reduced & costs lower
 Products simple and bought
 Stakeholder
 Products
 Simplified
 Sales

Conclusion
It is hoped that the stakeholders will rise to the occasion and the Government of Pakistan,
Securities & Exchange Commission of Pakistan and other regulatory bodies, Ministry of
Commerce, Insurance Companies, Insured Persons, Students, Teachers and other
representatives of civil society will make an enriched contribution in strengthening the
frontier of HRM / HRD so that the yawning gap which existed in the past to serve the
insurance sector is minimized and there is a real flourish of Insurance Sector to serve
the economy of the country in a befitting manner. Earlier this is done the better.
Furthermore Government of Pakistan should make sure that the reinsurance industry in
Pakistan is also developing. Because what we need is to make sure that in Pakistan there
are also volumetric reinsurance companies so that Insurance corporations may reinsure
locally that would be cost effective and easy to handle as well.
The global economic scenario and uncertain political situation is a challenge to the
insurance industry and equally to your company. Viewing difficult period ahead, the
company has drawn appropriate strategies to remain as a leading and innovative insurer
both locally as well as internationally.
The Company continues to focus in terms of growth of premium while at the same time
maintaining profitability and high ethical standard.
They have made a difference in the insurance industry and continue to strive to provide
leadership. Together with the aim to face the challenges of today by ensuring operational
excellence and quality standard to meet expectations of stakeholders.

Bibliography

Bibliography
Websites:
 www.statlife.com.pk
 www.swissre.com
 www.munichre.com/
 www.casact.org/pubs/proceed/proceed29/29022.pdf
 www.marclife.com/publications/History%20of%20reinsurance
Personal visits:
 MADAM SIDRA YASMEEN
( Sales Representative)
&

 SIR ABBAS GHAMAN
( Sales Manager)
STATE LIFE INSURANCE CORPORATION

IQBAL TOWN, LAHORE
 MUHAMMAD JAMEEL
(Assistant General Manager)
STATE LIFE INSURANCE CORPORATION
CENTRAL ZONE, LAHORE
( VISITED ON 13TH MAY)

Dedication
“To our loving parents and respected teacher , without who inspired and
tireless efforts this project would not have been possible.”

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HAILEY COLLEGE OF BANKING AND

Research Assignment title:

State Life Insurance Corporation 0f

1|Page Hailey College of Banking& Finance

MBA IRM 4th Semester

We do not have words to express deep gratitude and thanks to our

Words are lacking to express obligations to our affectionate Parents

Nida Asghar Faiza Lateef

 General Economic Review of Pakistan______________________________________5

 History of Life Insurance Corporation ____________________________________11

 Products Of State Life Insurance Corporation ______________________________ 14

4|Page Hailey College of Banking& Finance

Analyzing the reinsurance arrangements of State life Insurance Corporation gave us

various products of Reinsurance Companies.

5|Page Hailey College of Banking& Finance

influence on Pakistan Economy.

two-and-a-half year low.

Inspire of these extraordinary conditions 2007-2008, Pakistan's economy recorded a growth of

growth momentum through reforms is very much a plausible assumption.

6|Page Hailey College of Banking& Finance

attributable to the decent economic growth during this era.

According to an independent source, the gross premium of the General Insurance in

of 6% over 2007, insurance penetration is projected to be lower at 0.33% at the end of

7|Page Hailey College of Banking& Finance

posed substantial challenges to the sector in 2008.

Reinsurance and changing risk environment.

8|Page Hailey College of Banking& Finance

Marine insurance in antiquity was conducted chiefly by individuals, more or less in a

speculative manner, without a statistical foundation and without a retrospective data on

voyages were assigned to other, usually the more dangerous parts.

First Reinsurance Contract:

named GUILANO GRILLO contracted with GOFFREDO BENAIRA and MARTINO

9|Page Hailey College of Banking& Finance

which rendered insurance in large amounts. Reinsurance developed slowly at first.

limiting their commitments in certain areas.

The First Independent Reinsurance Company:

REINSURANCE COMPANY, this was the idea of MEVISSEN. He held that an

independent reinsurance company would be no competitor of the direct writing

companies and it was certain to be welcomed by and to receive a good volume of

business from those companies.

This marked the establishment of reinsurance as a specific, independent branch of the

business and thus extended to today’s form.

10 | P a g e Hailey College of Banking& Finance

11 | P a g e Hailey College of Banking& Finance

12 | P a g e Hailey College of Banking& Finance

March. 1972. It was executed in two stages.

framework of nationalization. The Board recommended establishing a single Corporation with

throughout Pakistan and competing with one another.

Multan headed by very able and competent executives.

13 | P a g e Hailey College of Banking& Finance

PRODUCTS OF STATE LIFE INSURANCE

 Individual life plans

 Group life and pension plans

14 | P a g e Hailey College of Banking& Finance

 Whole Life Assurance:

15 | P a g e Hailey College of Banking& Finance

Anticipated Endowment Assurance: