State Life Insurance Corporation of Pakistan
State Life
From Wikipedia, the free encyclopedia
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Industry
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Founded
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1972
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Headquarters
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Key people
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Products
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Owner(s)
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Employees
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4,502+ (2011)
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Website
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State Life Insurance Corporation of Pakistan (the Corporation) was incorporated on November 1, 1972 under the Life Insurance Nationalization Order, 1972. Due to its well established Agency Network of more than 90,000 sales people State Life is the largest Life Insurance Corporation since 1972 in Pakistan
The Life Insurance Business in Pakistan was nationalized in March 1972. Prior to 1972, 32 Life Insurance companies were involved in the life insurance business. These companies were later merged and placed under three Beema Units named “A”, “B” and “C” Beema Units. Later, these Beema Units were merged on November 1, 1972 and State Life Insurance Corporation of Pakistan came into existence. The major function of State Life Insurance Corporation of Pakistan is to carry out Life Insurance Business; however, it is also involved in the other business activities such as investment of policyholders’ fund in Government securities, Stock market, Real Estate etc.
The corporation is headed by chairman who is a chief executive of the corporation and appointed by the Government of Pakistan. Presently, Javed Iqbal is the chairman of the Corporation. Under his dynamic leadership State Life has not only achieved the highest new business growth but has also increased its share considerably.
The organizational structure of the corporation is as follow:
It comprises ten Directors including Chairman who are appointed by the Government of Pakistan and are responsible for devising strategies & plans to achieve the goals of Corporation.
It comprises ten Executive Directors responsible for implementation of policies set by the Board of Directors.
There are 14 Divisional Heads who are responsible for the functional area assigned to them.
There are 4 regions in Pakistan headed by regional chiefs responsible for looking after all the zones under his administration.
There are 26 zones in Pakistan headed by the zonal head responsible for procurement of business to achieve the set business target of the organization.
- To run life insurance business on sound lines
- To provide more efficient service to policyholders
- To maximize return to policyholders by economizing expenses and increasing yield on investment
- To make life insurance a more effective means of mobilizing national savings
- To widen the area of operation of life insurance and make it available to as large a section of the population as possible, extending it from comparatively more affluent sections of society to the common man in towns and villages''
- Total number of policies in force (individual life) was 357,413 in 1973 and 3,774,293 in 2011.
- First year premium has gone up from 48.2 (Year 1973) million rupees to 11.7 Billion rupees (Year 2011).
- Investment Income has enhanced to 30.74 billion rupees in year 2011.
- Total death claims paid by the corporation are 7,409 amounting to 1.4 billion rupees for the year 2010.
- The corporation declared record bonus of 24.7 billion rupees for the year 2010, which is 26.6 percent higher compared to 19.5 billion over last year. .
- In 2010, the first year individual life premium was $3.6 million. It was increased to $4.1 million in the year 2011.
- The total individual life premium is Rs. $15.6 million in the year 2011. It was $13.4 million is the year 2010.
- The total number of inforce policies was 12,957 in the year 2011.
- The total number of lives covered under group life was 6.10 million in 2011.
- The total premium under group life was Rs. 4.74 billion in the year 2011 as compared to Rs. 3.7 billion in the year 2010.
The Corporation distributes 97.50% of its actuarial surplus in the Life Fund to policyholders in the form of reversionary bonuses, while the remaining balance of 2.5% goes to the sole shareholder which is the Government of Pakistan.
SLIC’s investments are government securities (67%), corporate debts (1%), Equities (9%), Investment property (1%), Bank deposits (10%), Loans against policies (8%) and other assets (4%) as at 31 December 2011. The balanced composition of the investment portfolio helps SLIC to earn a good rate of return, the benefit of which is ultimately passed on to the policyholders. In 2011, State Life was able to earn an investment income of Rs. 30.74 billion as compared to Rs. 26.98 billion in 2010. This growth in investment income reflects an increase of 14% during this duration.
- The Corporation's head office is located at Dr. Ziauddin Ahmed Road, Karachi, Pakistan.
- The basic structure of the Corporation consists of Four Regional Offices, Twenty-Six Zonal Offices, a few Sub-Zonal Offices and 111 Sector Offices.
- There is a vast network of 461 Area Offices across the country for Individual Life Insurance.
- Four Zonal Offices and 6 Sector Offices with 20 Sector Heads for Group & Pension are also involved in the Marketing of Life Insurance Plans policies and products offered by State Life and a Principal Office.
- The Zonal Offices deal exclusively with Sales and Marketing, Underwriting of Life Insurance Policies and the Policyholder’s Services.
- Regional Offices, each headed by a Regional Chief, supervise business activities of the Zones functioning under them.
- The Principal Office, based at Karachi, is responsible for corporate activities such as investment, real estate, actuarial, overseas operations, etc. It also operates in the Gulf countries (Kingdom of Saudi Arabia, Kuwait, and United Arab Emirates) through the zonal office located in Dubai.
State Life has the following subsidiaries:
- Alpha Insurance Company Limited
- State Life (Abdullah Haroon Road) Properties (Private) Limited
- State life (Lackie Road) Properties (Private) Limited
- State Assets Management Company Limited (SAMCO)
State Life basically deals in following line of Business:
- Annuities
- Conventional Life insurance (Home Business)
- Group Life Insurance
- Pension Services
- Universal Life Business (Home Business)
State Life – Pakistan’s largest life insurer
A trustee of millions of valued policyholders
State Life Insurance Corporation of Pakistan is the largest Life Insurance providers in the country. It is one of those public sector organizations which is not a burden on the national exchequer. In fact, State Life is playing a pivotal role not only in providing financial protection to million of families through life insurance but also playing its role in the economic development of the country.
With the emergence of the new democratic era in 2009, State Life has further geared up its efforts to fulfill its obligation in providing financial relief to the Pakistanis through its core business i.e. life insurance.
Through wise and prudent marketing policies, State Life has shown an unprecedented growth in 2010 and 2011 showing 35% and 25% increase in new business First Year Premium/including Gulf) respectively. In 2011 State Life has procured new life insurance premium worth Rs.12.01 billion as compared to Rs.9.629 billion in the year 2010 which is a true indicator of our sound marketing policies and peoples’ trust in us. State Life’s total Group premium touched a new summit of Rs.4.971 billion till Dec. 2011 and No. of lives covered has increased from 3.83 million to 5.93 million; posted an increase of 26.17 % compared to Rs.3.940 billion last year till Dec. 2010. Not only in new business, State Life has shown significant growth in other areas of its operations. It has shown unprecedented growth in renewal premium, number of policies and life fund which now touching Rs.269 billion to date.
The Pakistan Credit Rating Agency (PACRA) has assigned the Insurer Financial Strength (IFS) rating of “AAA” (Triple A) to State Life Insurance Corporation of Pakistan (SLIC). The rating denotes SLIC’s exceptionally strong capacity to meet policyholder and contract obligations. At the same time, risk factors are considered minimal, and the impact of adverse business and economic factors is expected to the extremely small.
With the emergence of the new democratic era in 2009, State Life has further geared up its efforts to fulfill its obligation in providing financial relief to the Pakistanis through its core business i.e. life insurance.
Through wise and prudent marketing policies, State Life has shown an unprecedented growth in 2010 and 2011 showing 35% and 25% increase in new business First Year Premium/including Gulf) respectively. In 2011 State Life has procured new life insurance premium worth Rs.12.01 billion as compared to Rs.9.629 billion in the year 2010 which is a true indicator of our sound marketing policies and peoples’ trust in us. State Life’s total Group premium touched a new summit of Rs.4.971 billion till Dec. 2011 and No. of lives covered has increased from 3.83 million to 5.93 million; posted an increase of 26.17 % compared to Rs.3.940 billion last year till Dec. 2010. Not only in new business, State Life has shown significant growth in other areas of its operations. It has shown unprecedented growth in renewal premium, number of policies and life fund which now touching Rs.269 billion to date.
The Pakistan Credit Rating Agency (PACRA) has assigned the Insurer Financial Strength (IFS) rating of “AAA” (Triple A) to State Life Insurance Corporation of Pakistan (SLIC). The rating denotes SLIC’s exceptionally strong capacity to meet policyholder and contract obligations. At the same time, risk factors are considered minimal, and the impact of adverse business and economic factors is expected to the extremely small.
The rating reflects state-owned SLIC’s leading position in life insurance business in Pakistan. This is supplemented by the corporation's extensive distribution network, good management quality, comprehensive information system, and growing business volumes. The rating also factors in the State Life's robust financial profile emanating from its sound investment portfolio that has sizeable surplus over policyholder liabilities. Meanwhile, the rating draws strong comfort from the guarantee provided by Government of Pakistan (GOP) in respect of liabilities of the corporation.
State Life distributes 97.5% as against 90% by the private sector, of its surplus as bonus to its valued policyholders while 2.5% goes to the Govt. of Pakistan. Last year State Life has announced to allocate Rs.18.59 billion as bonuses on with profit policies to its policyholders on the basis of actuarial valuation for the year 2010. In fact State Life is one of those organizations which are distributing their surplus in billions of Rupees to its policyholders.
State Life is one of the largest Real Estate owners of the country. It has wisely invested the policyholder’s money in sound Real Estate Projects. This not only provides earnings to the Corporation in shape of rent but also provide space for its offices throughout Pakistan. In the year 2010-2011, the management has launched constructions projects of State Life buildings at Sargodha, Sialkot and Gujranwala to provide quality space for business promotion in these cities. This is in addition to the eighteen floors under construction Islamabad Towers.
To help support the marketing force various advertising campaigns on product and corporate image building are released in the print and electronic media.
The four pillars of marketing i.e. product, price, place and promotion forms the core marketing philosophy at State Life. Presently there are 26 Zonal Offices and four Regional Offices located throughout Pakistan besides the Gulf Zone in the Middle East located at Dubai, (UAE).
The North, Central, Multan and South regions are fully operative and well maintained with 1,21,000 actively trained marketing force including 20,000 women field workers, who are committed to the excellence of procuring quality business and constantly involved in providing after sales services to the policyholders at their door steps.
Product research is an ongoing area at State Life which is manifested in the innovative solutions to continue product development. In a bid to provide value added life insurance plans and policies to its prospective and millions of existing valued policyholders, State Life aims to launch new saving friendly products in the near future.
As a market leader in life insurance industry State Life has the ability to deliver the financial services. The Management of State Life intends broad initiatives such as introduction of insurance scheme for the rural populous, increase the urban presence of State Life through mass media publicity, repositioning of Gulf Zone (Kingdom of Saudi Arabia, Bahrain, Kuwait and the UAE) operations, highlighting in the media that State Life’s policyholders get claims payment during their life time and provide optimum financial benefits and savings to the policyholders and their families by expanding marketing operations. The prudent investment initiatives of senior management, State Life has resulted in better returns to its millions of valued policyholders in terms of “bonuses” that grows from year to year in billions of rupees. In fact, the zealousness of our fully committed marketing force extends to all the urban and rural areas of the country by promoting savings through life insurance. Steps are in hand on the part of State Life’s higher management to provide state-of-the-art training and groom its marketing force to create mass awareness about the benefits of life insurance with State Life. This would untap the vast potential in Pakistan’s life insurance market, ensure that optimum numbers of families across the country are provided the benefits and financial coverage of their hard earned money through life insurance would ultimately raise the ‘saving’ ratio and contribute meaningfully to economic development of the country.
Corporation Communication Department
State Life Insurance Corporation of Pakistan
State Life distributes 97.5% as against 90% by the private sector, of its surplus as bonus to its valued policyholders while 2.5% goes to the Govt. of Pakistan. Last year State Life has announced to allocate Rs.18.59 billion as bonuses on with profit policies to its policyholders on the basis of actuarial valuation for the year 2010. In fact State Life is one of those organizations which are distributing their surplus in billions of Rupees to its policyholders.
State Life is one of the largest Real Estate owners of the country. It has wisely invested the policyholder’s money in sound Real Estate Projects. This not only provides earnings to the Corporation in shape of rent but also provide space for its offices throughout Pakistan. In the year 2010-2011, the management has launched constructions projects of State Life buildings at Sargodha, Sialkot and Gujranwala to provide quality space for business promotion in these cities. This is in addition to the eighteen floors under construction Islamabad Towers.
To help support the marketing force various advertising campaigns on product and corporate image building are released in the print and electronic media.
The four pillars of marketing i.e. product, price, place and promotion forms the core marketing philosophy at State Life. Presently there are 26 Zonal Offices and four Regional Offices located throughout Pakistan besides the Gulf Zone in the Middle East located at Dubai, (UAE).
The North, Central, Multan and South regions are fully operative and well maintained with 1,21,000 actively trained marketing force including 20,000 women field workers, who are committed to the excellence of procuring quality business and constantly involved in providing after sales services to the policyholders at their door steps.
Product research is an ongoing area at State Life which is manifested in the innovative solutions to continue product development. In a bid to provide value added life insurance plans and policies to its prospective and millions of existing valued policyholders, State Life aims to launch new saving friendly products in the near future.
As a market leader in life insurance industry State Life has the ability to deliver the financial services. The Management of State Life intends broad initiatives such as introduction of insurance scheme for the rural populous, increase the urban presence of State Life through mass media publicity, repositioning of Gulf Zone (Kingdom of Saudi Arabia, Bahrain, Kuwait and the UAE) operations, highlighting in the media that State Life’s policyholders get claims payment during their life time and provide optimum financial benefits and savings to the policyholders and their families by expanding marketing operations. The prudent investment initiatives of senior management, State Life has resulted in better returns to its millions of valued policyholders in terms of “bonuses” that grows from year to year in billions of rupees. In fact, the zealousness of our fully committed marketing force extends to all the urban and rural areas of the country by promoting savings through life insurance. Steps are in hand on the part of State Life’s higher management to provide state-of-the-art training and groom its marketing force to create mass awareness about the benefits of life insurance with State Life. This would untap the vast potential in Pakistan’s life insurance market, ensure that optimum numbers of families across the country are provided the benefits and financial coverage of their hard earned money through life insurance would ultimately raise the ‘saving’ ratio and contribute meaningfully to economic development of the country.
Corporation Communication Department
State Life Insurance Corporation of Pakistan
Individual Life Plans:--Whole Life Assurance,English:t 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. Click herefor supplementary covers which can be attached with this plan.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. Click here for calculation of premium on your life under this plan. |
Whole Life Assurance,Urdu
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.
Survival Benefits
- On completion of one-third of the policy term, 20% of basic sum assured can be taken by the policyholder. Another 20% of the sum assured can be taken on completion of two-third of the policy term and the remaining 60% of basic sum assured plus accrued bonuses (if any) shall be payable at the end of the policy term in the event of survival of the assured.
- If the option to withdraw an installment of 20% sum assured is not exercised on the due date or within 6 months after the due date, a special bonus will automatically be added to the policy at the end of 6 months. In this event:
- On death of the assured while the policy is in force, the special bonus will be payable in addition to (1) Basic Sum Assured (2) Other Reversionary Bonuses accrued on the policy and (3) the amount of any installment left with State Life.
- On the maturity date, the special bonus will be payable together with all the installments of the sum assured remaining with State Life, in addition to regular reversionary bonuses accrued on the policy.
- So long as the policy remains in force, the policyholder may surrender the unclaimed installment of sum assured together with the related special bonus. The aggregate cash surrender value of the two shall not be less than the amount of the said unclaimed installment.
- 4.The reversionary bonuses as per usual practice will continue to be allotted each year on the basic sum assured (if in force) as and when Actuarial Surplus is declared. However, the unclaimed installments of the sum assured and related special bonus will not participate in State Life's Actuarial Surplus.
Death Benefits
The full basic sum insured plus accrued bonuses are payable on death of insured any time while the policy is in force. In addition, if death occurs as a result of an accident, additional amount equal to one basic sum assured, subject to maximum limit, will be paid. The usual maximum on the ADB of Rs. 4 million will apply and premium will be calculated accordingly
Bonuses
This policy will participate in State Life's surplus. Rates of bonus applicable will be 25% higher than those on anticipated endowment plan.
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. Please click here for the details of supplementary covers. If you want to calculate your premium under this plan, please click here.
For more plans please visit www.statelife.com.pk
Source(s)
- www.statelife.com.pk
- en.wikipedia.org/wiki/State_Life
- thefinancialdaily.com/NewsDetail/144889.aspx
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