Interview with Mr. Tariq Hussain, Corporate Laws & Insurance Expert and Tax Management Specialist
PAGE: Tell me something about yourself, please:
Tariq Hussain: I have acquired FCMA, FCIS, MBA, MA(Eco),M.Phil. (Eco) Besides that, I have about 29 years of experience working in the corporate sector, including as Director / HOD at SECP and as An Adl. Director / (Senior Audit Expert) at NAB Karachi, and also known as Corporate Laws, Insurance Expert and Tax Management Specialist.
PAGE: It is widely believed that providing group health insurance in Pakistan is no longer just a corporate perk, rather it is a necessity for every business. What is your perspective in this regard?
Tariq Hussain: The view that group health insurance in Pakistan has transitioned from a discretionary corporate benefit to a business necessity is both valid and timely. Firstly, the rising cost of healthcare in Pakistan has significantly increased the financial vulnerability of employees. In the absence of structured health coverage, even routine medical treatments can impose a substantial burden on individuals, which ultimately affects their productivity and financial stability. By offering group health insurance, employers not only safeguard their workforce but also ensure continuity and efficiency in operations. Secondly, from a human resource perspective, group health insurance has become a critical tool for attracting and retaining talent. The job market is increasingly competitive, and employees now evaluate compensation packages holistically. Health coverage is perceived as a fundamental component of employee well-being rather than an optional incentive. Organizations that fail to offer such benefits risk losing skilled professionals to competitors who provide more comprehensive welfare packages.
Moreover, there is a growing awareness of employee welfare, mental health, and work-life balance. Post-pandemic realities, particularly after COVID-19, have reinforced the importance of health security. Employees expect their employers to play a proactive role in mitigating health-related risks, and group insurance is one of the most effective mechanisms to fulfill this expectation. Additionally, group health insurance can be cost-effective for employers due to risk pooling, making it more affordable compared to individual coverage. It also contributes to reduced absenteeism, improved employee morale, and enhanced organizational loyalty, which collectively translate into long-term financial benefits for the business.
However, it is also important to recognize that for small and medium enterprises (SMEs), affordability and access remain challenges. Therefore, innovative and flexible insurance products tailored to SMEs are essential to broaden coverage across the economy. In conclusion, group health insurance in Pakistan is no longer merely a corporate perk; it is an essential component of a sustainable business strategy. It supports employee welfare, strengthens organizational resilience, and aligns with modern expectations of responsible corporate behavior.
PAGE: The Securities and Exchange Commission of Pakistan (SECP) has granted a license to Punjab Life Insurance Company Ltd (PLIC), the establishment of provincial government-owned life insurance company. Would such initiatives increase the insurance penetration in Pakistan?
Tariq Hussain: The licensing of Punjab Life Insurance Company Ltd by the Securities and Exchange Commission of Pakistan is a positive development that can contribute to increasing insurance penetration in Pakistan, particularly by expanding outreach to under-served and lower-income segments through government-backed credibility and distribution channels; such initiatives can build public trust, promote financial inclusion, and support social protection objectives. However, this is not the first such effort, as the SECP had already granted a license in 2014 to the Government of Sindh to establish Sindh Insurance Ltd, a wholly owned provincial insurer providing non-life services including health and accidental coverage, which demonstrates that provincial participation can play a meaningful role in market development; nevertheless, the overall impact on penetration will depend on effective execution, innovative product design, public awareness, and strong governance to ensure these entities operate on sound commercial and service principles.
PAGE: How would you comment on pension-related solutions and annuity products?
Tariq Hussain: Pension-related solutions and annuity products in Pakistan remain critically underdeveloped despite their central role in ensuring post-retirement income security; while the Securities and Exchange Commission of Pakistan has enabled the growth of the Voluntary Pension System (VPS) for the accumulation phase, the decumulation phase is weak, with retirees largely relying on income payment plans that fail to address longevity and market risks, thereby undermining financial stability in old age. The annuity market faces structural and behavioral challenges, including low financial literacy, limited long-term savings culture, lack of long-tenor investment instruments (such as 15–20 year PIBs and Sukuks), tax asymmetry disadvantaging insurance-based products, and weak coordination between pension fund managers and insurers, which collectively restrict product development and uptake. Going forward, a well-defined regulatory framework, mandatory or partial annuitization at retirement, tax neutrality across pension products, and the availability of long-term investment avenues are essential to create a sustainable annuity ecosystem; if these reforms are implemented effectively, annuity products can play a transformative role in providing predictable lifetime income, strengthening social protection, and deepening Pakistan’s overall financial sector.
PAGE: There are some ambitious plans to bring insurance to millions of small businesses. How could this be done rapidly?
Tariq Hussain: Expanding insurance to millions of small businesses in Pakistan requires a fast, ecosystem-based approach rather than a traditional sales model; regulators like the Securities and Exchange Commission of Pakistan can enable this by allowing simplified, standardized micro and SME insurance products with minimal documentation and quick claims settlement, while insurers should leverage digital distribution through banks, fintechs, telcos, and platforms such as JazzCash and Easypaisa to achieve scale at low cost. Embedding insurance into existing business touchpoints—such as loans, supply chains, utility connections, and tax registrations—can drive rapid adoption, supported by government-backed schemes or partial risk-sharing to build trust. In parallel, awareness campaigns, simple product design, and use of parametric or bundled covers (covering health, asset, and business interruption risks) can accelerate uptake; ultimately, speed will come from combining regulatory flexibility, digital infrastructure, and public-private collaboration to make insurance accessible, affordable, and frictionless for small enterprises.