Mr. Saifuddin N. Zoomkawala, Chairman, EFU General Insurance Ltd.

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Mr. Saifuddin N. Zoomkawala, Chairman, EFU General Insurance Ltd.
Mr. Saifuddin Nooruddin Zoomkawala is the Chairman of EFU General Insurance
Limited, Chairman of Allianz - EFU Health Insurance Limited and Director of EFU Life
Assurance Limited. Having spent most of his professional career with the Company,
Mr. Zoomkawala has risen through the ranks, from sales representative to the position of
Chairman of Pakistan's oldest insurance company. Business Recorder Research recently
met with the industry veteran. The following transcript is based on key takeaways from
that meeting.
Brief History of the company
Prior to independence of Pakistan, Muslims of the Indian sub-continent had not fared
well in terms of professional qualifications, higher education and employment
opportunities. In order to improve their conditions and also to generate economic
activity for the Muslims, Quaid-e-Azam Muhammad Ali Jinnah and other prominent
Muslim leaders of the sub-continent urged them to pursue higher education and enter
into the financial and manufacturing industries.
In order to create more job opportunities, these leaders called on influential Muslims
to invest in new business ventures that could employ Muslims and also equip them
with modern and professional skills. In response to this emergent need, Eastern
Federal Union Insurance Limited was created in 1932 through the efforts of
Mr. Ghulam Muhammad. He was supported in this endeavour by the Nawab of
Bhopal and the Aga Khan III. Mr. Abdul Rehman Siddiqui became the founder
chairman of the new company, which was registered in Calcutta.
The Company continued to expand over the years. After the independence of
Pakistan, its head office was shifted to Chittagong, in then-East Pakistan. By 1971,
the Company had grown to become the largest insurance company in the AfroAsian region (excluding Japan).
In subsequent years, the company faced certain challenges. The Fall of Dhaka affected it operations because a significant portion of the
portfolio was in that part of the country. A few years later, when the Government of Pakistan decided to nationalise large industries and life
insurance a large chunk of the company's portfolio went into what later emerged as the State Life Insurance Corporation.
Through such tumultuous times, EFU has persevered to remain one of the most significant players in the insurance sector of Pakistan.
Replacing the visionary leader, Mr. RoshenAli Bhimjee at the helm of affairs, came Mr. Saifuddin Nooruddin Zoomkawala.
Bringing insurance cover to all Pakistanis
Chairman EFU General Insurance highlighted three major hurdles in the growth of insurance industry in the country: low per capita income,
religious considerations and lack of awareness. He highlighted the need for concerted efforts by the industry, regulators and all other
stakeholders for creating awareness regarding the need and benefits of seeking insurance cover.
The industry veteran pointed out that the insurance companies in the country should be encouraged by the regulators to split their operations
into two separate departments: corporate and retail. At present, all insurance companies cater to both the categories of clients. As a result
senior managers predominantly remain focused on expanding their corporate portfolio because the size of the policies and the consequent
revenue stream per client is much higher as compared to individual clients.
If the companies split their operations into two separate departments the newly created department will be able to dedicate more time for
increasing the number of individual policy holders. They would also devote more energy towards raising awareness among individuals and
pursuing prospective clients.
When asked about the growth prospects for general insurance and life insurance in the country, Mr. Zoomkawala stated that life insurance
enjoys better growth opportunities. He explained that this is because life insurance policies are longer term policies and that once a client is
acquired, he or she is more likely to continue contributing towards the policy over subsequent years.
Continued on Page 22
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