By Adnan Rafique
ISLAMABAD: The cost of doing insurance is very high in the country which is one of the reasons behind a lack of interest among masses, a risk manager said Thursday. Insurance sector cannot develop unless it introduce inexpensive products, therefore companies should reduce operating costs, said risk manager Ishtiaq Ahmed.
Talking to Dr. Murtaza Mughal, Convener FPCCI Central Standing Committee on Insurance, he said that reduced taxation is imperative to boost the insurance industry.
Ishtiaq Ahmed who is CEO of Independent Risk Managers said that an additional Sales tax of five percent should be removed on earning of agents as they are already paying 12 percent withholding tax.
Harsh taxation measures and overregulation is hampering the growth of the insurance industry, he added.
He said that coronavirus has highlighted the risk factor, therefore the government should consider making group health and group life insurance mandatory.
At the occasion, Dr. Murtaza Mughal said billionaires and the multinationals consider insurance cover necessary to mitigate risks.
He said that medical expenditure with high severity could be a significant economic shock for a poor or mediocre that can be mitigated through health insurance as pandemic has exposed the weaknesses in the public health system.
Reducing risk is what business insurance is all about which must be supported by the government, he demanded.