- Building trust, bridging gaps and fostering stability for sustainable growth
- State-run health insurance plans hold invaluable potential benefits
Interview with Muhammad Nasir Ali Syed — Executive Director Operations, 5th Pillar Family Takaful LimitedÂ
Profile:
Muhammad Nasir Ali Syed is an accomplished executive with over thirty years of experience in the Takaful (Islamic insurance) and insurance sectors. He currently serves as the Executive Director Operations at 5th Pillar Family Takaful Limited. Muhammad is known for his outstanding leadership and strategic skills, and he has played a key role in the growth and innovation of several top-tier firms in the industry. Throughout his career, Muhammad Nasir has demonstrated his ability to lead his organisations towards groundbreaking achievements and operational excellence. Prior to his current position, he served as the Executive Director of Health and Emerging Lines at Salam Takaful Limited and the Chief Executive Officer at both Pak-Qatar General Takaful and Pak-Qatar Family Takaful Limited.
His visionary leadership earned him recognition from the President of Pakistan in 2016, and he was also celebrated as one of the “100 Best-Performing CEOs & Companies of Pakistan.”
Muhammad Nasir skillfully blends traditional Islamic financial principles with advanced business tactics to catalyse economic growth and uphold ethical practices and community engagement. He has a solid educational foundation, with a master’s degree from the University of Karachi, and various professional qualifications in Islamic finance and corporate governance.
Driven by a personal philosophy centered on service and gratitude, Muhammad Nasir is committed to significantly impacting his professional activities and community initiatives. As a devoted family man and an active participant in community affairs, he enjoys reading, traveling, and photography, capturing and valuing the diverse stories of life around him.
In his current role at 5th Pillar Family Takaful Limited, Muhammad Nasir is dedicated to refining the company’s operational frameworks, ensuring service excellence, and making substantial contributions to Pakistan’s broader financial fabric.
PAGE: What is your standpoint about health, life, auto, and property insurance in Pakistan?
Muhammad Nasir Ali Syed: Insurance penetration in Pakistan remains notably low compared to global standards, highlighting many crucial financial security and risk management gaps. Increasing this penetration is essential for protecting the country in the event of loss and enhancing its overall economic stability. Takaful or Islamic insurance, an alternative to conventional insurance, offers a structured approach to financial risk mitigation, aligning with the ethical and financial needs of a significant portion of the population.
The pivotal roles played by health, life, auto, and property insurance in stabilising personal finances and bolstering societal resilience cannot be overstated. Health insurance is critical in a healthcare system burdened by high out-of-pocket expenses, ensuring individuals can access necessary medical treatments without financial distress. Life insurance acts as a safeguard, providing economic security and peace of mind by protecting against life’s uncertainties. Auto insurance mitigates risks associated with the growing number of vehicles, covering frequent incidents such as accidents and thefts. Similarly, property insurance is indispensable for protecting homes and businesses against extensive damage from natural disasters and other physical threats.
Collectively, these insurance policies do more than just support individual and family stability; they are vital components that contribute to the nation’s economic vitality. They enable effective risk management and sharing, which is essential for fostering a robust and progressive economic landscape. However, the growth and effectiveness of these sectors depend heavily on implementing more robust regulations, expanding awareness programmes, and building trust between consumers and insurance providers. With enhanced measures in these areas, Islamic insurance can solidify its role in sustainable economic development and personal financial planning in Pakistan.
PAGE: How can individuals assess the risks they face in their personal or professional lives?
Muhammad Nasir Ali Syed: To answer this question, I would like to reference the Holy Quran, specifically Surah Yusuf. In this Surah, Prophet Yusuf interprets the King’s dream and predicts seven prosperous years followed by seven years of drought. He advises storing a portion of the harvest during the fruitful years to prepare for the coming scarcities. This story provides spiritual guidance and illustrates a proactive approach to risk management based on foresight and planning. Understanding the risks inherent in our personal and professional lives is crucial. Common risks we may encounter include illness, accidents, theft, job loss, and even the profound risk of loss of life. Despite a general awareness of these risks, a significant challenge for many is a lack of financial literacy and an understanding of risk mitigation strategies at both individual and professional levels.
Many are not well-informed about the tools available to protect against financial losses, and their usual saving habits may be inadequate to manage unforeseen events effectively. By mastering the assessment and management of risks, individuals can significantly enhance their ability to navigate personal and professional challenges, thereby achieving greater financial stability.
Here are five practical steps to effectively assess and manage risks:
– Identify potential problems: Reflect on potential adverse events in your life. Personally, this might include unexpected medical bills, sudden unemployment, or the need for significant home repairs after severe weather. Professionally, risks could emerge from major shifts in your industry affecting job security or new regulations that complicate business operations.
– Evaluate the likelihood: Consider how likely each risk is to occur. Regular issues with a vehicle, for example, might indicate a high likelihood of needing costly repairs. Conversely, the risk of your home sustaining earthquake damage might be relatively low, depending on your specific location in Pakistan.
– Determine the impact: Assess the potential severity of each risk. Minor inconveniences like small automotive repairs can be manageable, but major health issues without adequate insurance coverage could lead to severe financial strain.
– Stay informed and adaptive: Keep abreast of economic trends, legislative changes, and local developments. This ongoing awareness can help you anticipate potential risks and adapt your strategies, accordingly, preventing manageable risks from escalating into emergencies.
– Develop a risk management plan: After comprehensively understanding your risks, create a mitigation plan. This could involve building an emergency savings fund, investing in appropriate insurance policies, or making strategic lifestyle or professional changes to reduce risk exposure.
By implementing these steps, individuals can enhance their decision-making capabilities, safeguard their families’ futures, and maintain peace of mind. This proactive approach to risk management is crucial in managing unexpected situations and enhancing overall financial security.
PAGE: What is your perspective about state-run health insurance programmes?
Muhammad Nasir Ali Syed: State-run health insurance programmes have the potential to transform healthcare accessibility and affordability, particularly in thickly populated countries like Pakistan. One of the primary advantages of these programmes is their ability to leverage economies of scale. By covering a large and diverse population, state-managed insurance can negotiate more favourable terms with healthcare providers and pharmaceutical companies. This benefits everyone by making treatments more affordable while maintaining high quality and benefiting the entire healthcare system.
The Sehat Sahulat Programme is a prime example of a state-run initiative making strides in addressing these challenges. It aims to provide vulnerable families in Pakistan with access to quality healthcare without the burden of catastrophic expenditure. As of the latest reports, the programme covers over 10 million families, demonstrating significant progress in enhancing healthcare access. This initiative illustrates the potential for state-run insurance to make a substantial impact, even in regions with traditionally low insurance penetration.
According to recent statistics, health insurance penetration in Pakistan stands at around 0.3% of GDP, a figure considerably lower than in more developed economies, indicating ample scope for expansion and improvement.
In conclusion, while state-run health insurance programmes like Pakistan’s Sehat Sahulat face several challenges, they hold invaluable potential benefits. These include promoting public health, reducing healthcare inequality, and fostering a healthier, more productive society. With strategic management, commitment to adequate funding, and ongoing improvements in programme delivery, these initiatives can serve as foundational elements for a healthier future in Pakistan.
PAGE: The insurance sector penetration has stagnated for years at less than one percent of GDP, while several categories, including micro insurance, livestock insurance, and insurance against losses due to disaster and terrorism, were almost nonexistent. Your views:
Muhammad Nasir Ali Syed:Â The insurance sector’s persistent stagnation below one percent of GDP reflects untapped potential, especially in microinsurance, livestock coverage, and protection against disaster and terrorism-related losses. Limited penetration stems from low awareness, mistrust, regulatory constraints, and product mismatches with diverse demographic needs. Microinsurance struggles with distribution challenges and a lack of understanding, while livestock insurance faces valuation and risk assessment hurdles. Disaster and terrorism coverage remains unattractive to insurers due to high risks, often requiring innovative models or government intervention for viability.
To enhance sector penetration, a multifaceted approach is crucial. This includes boosting awareness through comprehensive campaigns, refining regulations to support diverse products, fostering partnerships among stakeholders to design inclusive offerings, and leveraging technology for broader accessibility. By addressing these challenges and implementing strategic improvements, the insurance sector can broaden its reach, bolster economic resilience, and provide vital support to vulnerable segments of society.