- Low literacy, religious concerns, and mistrust leave Pakistanis reluctant to engage with insurance services
Interview with Muhammad Nasir Ali Syed — Executive Director, Operations at 5th Pillar Family Takaful Limited
PAGE: Tell me something about yourself, please:
Muhammad Nasir Ali Syed: I have over thirty years of experience in the Takaful and insurance industries, which I view not just as a job, but as a way to provide ethical service, inspire new ideas, and contribute to our nation’s development. Currently, I am the Executive Director of Operations at 5th Pillar Family Takaful Limited, where my main focus is to enhance how we operate, promote growth, and ensure that our services uphold Islamic financial values. Throughout my career, I have had the chance to lead important projects at several leading organizations. Before my current role, I was the Executive Director of Health and Emerging Lines at Salam Takaful Limited, and I also served as the CEO of both Pak-Qatar General Takaful and Pak-Qatar Family Takaful. These experiences have taught me the importance of balancing forward-thinking ideas with practical execution, always keeping people and purpose central to our business strategies.
My journey is greatly influenced by my parents, whose values of honesty, perseverance, and community service continue to guide me. I am also thankful for the mentors I’ve learned from along the way, as their advice has played a crucial role in my development.
On the educational front, I have a master’s degree from the University of Karachi and have completed professional courses in Islamic finance and corporate governance. I believe in continuous learning, not just to keep up professionally, but to stay ethically responsible and ready for the future in our changing global economy.
At 5th Pillar Family Takaful, I see great potential not only to expand our services but also to change how Takaful can positively impact Pakistan’s financial landscape. I see it as both an opportunity and a responsibility to lead with intention, ensuring that our growth is inclusive, principled, and meaningful.
PAGE: Why do Pakistani remain reluctant to use insurance services?
Muhammad Nasir Ali Syed: In Pakistan, many people are hesitant to use insurance services, and this is mainly due to a few key reasons: low awareness about financial matters, economic difficulties, and religious beliefs. With a national literacy rate of only 58% and just about 10% to 15% of the population having more than a secondary education, many folks don’t have a solid grasp of financial products like insurance. In fact, research shows that only 26% of people have the skills to effectively understand and manage money. Because of this lack of understanding, insurance is often viewed as an unnecessary expense rather than a valuable protection tool. Important ideas such as risk-sharing, protecting one’s income, and planning for the future aren’t widely recognized, which makes people hesitant to consider insurance.
In Islam, taking proactive steps to manage risks is not only practical but also encouraged. The Prophet Muhammad (peace be upon him) advised, “Tie your camel and then trust in Allah” (Tirmidhi), highlighting the importance of combining reliance on God with responsible action. This principle supports the idea that while faith is essential, practical measures, like insurance or Takaful, are also necessary to safeguard one’s well-being.
Religious beliefs also play a significant role in this reluctance. In a country where most people are Muslim, many shy away from traditional insurance because they associate it with practices like riba (interest), gharar (uncertainty), and maysir (gambling), which are not acceptable in Islam. This has led to a general mistrust of conventional financial services. Economic challenges add to the issue. With over 30% of the population living in poverty and many struggling with rising prices, people tend to focus on their immediate needs, viewing insurance as more of a luxury than a necessity. Past negative experiences, such as confusing policy terms or delays in receiving claims, have further shaken confidence in the insurance industry.
Another important factor is the lack of a culture focused on saving money.
Without the habit of setting aside funds, it’s tough for people to recognize the benefits of insurance, which is all about working together as a community to share risks and support one another in tough times.
This is where Family Takaful can really help. Takaful is a Shariah-compliant alternative to traditional insurance that offers a clear, ethical, and cooperative approach. It addresses both religious concerns and practical needs, emphasizing mutual assistance and accountability, which fit well with the community-oriented values of Islam. For Takaful to truly succeed, we need to focus on educating people about financial matters, simplify the products offered, and work on rebuilding public trust. Only then can we hope for wider acceptance and involvement across society.
PAGE: How would you comment on lack of awareness about actual risk levels?
Muhammad Nasir Ali Syed: In Pakistan, one of the biggest challenges we face is that many people, including families and small businesses, don’t fully realize the risks that could impact their lives. Events like illness, death, disability, or losing a home can have serious financial consequences, but many see these risks as unlikely or distant, rather than something they need to prepare for.
This lack of awareness comes partly because we don’t have enough education about these issues in schools, universities, and public discussions. In many developed countries, people learn about planning for financial challenges early on. Unfortunately, most Pakistanis often only understand the importance of this kind of planning after facing a loss, and by then, it can be too late to recover easily. As a result, people often depend on informal support from family and friends during tough times. While this support is valuable, it may not be enough when facing significant or long-lasting financial difficulties. In the Takaful industry, we see this challenge not only as a business issue but also as a social responsibility. We want to change the way people think about risk—from ignoring it to preparing for it. Takaful is a cooperative and ethical way to deal with life’s uncertainties, aligning financial responsibility with our cultural and religious values. Our role goes beyond just selling financial products. We need to engage with communities, help people understand how to share risks together, and promote the idea that financial protection is important in today’s world. When people realize that Takaful is about planning and supporting each other, rather than just fearing what might happen, they are more likely to welcome it.
To really make a difference, we need a nationwide effort to improve financial literacy and educate people about risk management. This initiative should involve schools, media, religious leaders, government, and businesses all working together to change how we think about and prepare for risks. Only then can we create a society where people are not just relying on traditional support but are making informed choices that help them stay secure.
PAGE: Around 0.8% Pakistani have insurance coverage. What is your take on it?
Muhammad Nasir Ali Syed: The fact that only 0.8% of people in Pakistan have insurance coverage, compared to about 4% in India, shows a significant problem in how we protect ourselves financially. While both countries face similar social and economic issues, India has made quicker progress by embracing technology, introducing government-supported insurance programs, and raising awareness among its citizens.
Although initiatives like Sehat Sahulat are positive steps, they have limited reach. What’s really needed is a national plan that focuses on raising awareness, making insurance accessible, and building trust, especially in communities that often don’t have these services.
One of the unique advantages Pakistan has is the Takaful model, which is a Shariah-compliant and ethical form of insurance. This model aligns with the beliefs of many in our country and could help build trust where traditional insurance may struggle. However, for Takaful to thrive, it needs more support from regulators, religious leaders, and tech providers.
The path forward is clear: Pakistan needs to invest in teaching people about financial options, promote Takaful as a reliable choice, and use mobile and digital tools to reach those who currently lack coverage. By raising awareness and fostering trust through community involvement and straightforward products, we can move from having low insurance coverage to providing broad and inclusive protection for everyone. This gap between Pakistan and India isn’t just a number — it’s a call for action. With the right changes and teamwork, we can not only bridge this gap but also create a model of ethical and inclusive insurance that reflects our values and meets the real needs of our people.
PAGE: Insurers promote economic growth by keeping businesses afloat during emergencies. What is your standpoint?
Muhammad Nasir Ali Syed: Insurance is an important, though often overlooked, part of our economy that helps it grow and stay stable. When disasters strike, whether they’re natural events, business interruptions, or legal issues, insurance acts like a safety net by providing financial support. This support helps businesses bounce back quickly, avoid significant losses, keep their employees paid, and continue their operations. In doing so, it safeguards not just individual companies but helps the entire economy as well. At a national level, having a strong insurance system makes a country more resilient. It spreads risks across different areas, helps people access loans, encourages investments, and allows for better long-term financial planning. Countries with more people and businesses insured generally recover more quickly from crises and attract more investments, both from local and foreign sources. In Pakistan, the importance of insurance has grown even more due to recent challenges like climate-related disasters, rising prices, and political uncertainty. Unfortunately, many people and businesses in Pakistan do not have enough insurance coverage, which makes it harder for them to handle economic shocks and increases risk for everyone.
Takaful, which is the Islamic version of insurance, offers a different approach. It is built on principles of mutual support, transparency, and ethical investing, making it acceptable to more people. Takaful enables individuals and businesses to manage risks while respecting their religious beliefs. Its system of sharing risks and distributing any surplus helps build trust in the process and provides financial protection.
To achieve sustainable growth in the economy, we need to view insurance and Takaful as essential tools rather than optional services. Encouraging small and medium-sized businesses to protect their assets, employees, and operations with insurance is a practical step toward building long-term economic stability.
Supporting the growth of both insurance and Takaful is more than just about financial safety; it’s about creating a stronger, more inclusive, and secure economy that benefits everyone.