EFU General Insurance Ltd. Final ProjectThe south Asia in general and Pakistan in particular has become the focus of entire worldsince incident of September 11. The existing geo-political environment has graverepercussions on the insurance industry of the region. This has resulted in high insurancerates for all kinds of insurance products. Insurance business has never been in so much oflime light as it is today in our country.Keeping its significance in present environment, we have decided to initiate an analyticalstudy on this subject from management perspective. Therefore, we will be trying to takethis project on analytical study of insurance business in Pakistan. After contemplating through the merits and demerits of different insurance-business related topics and after evaluating their importance in the subject ofManagement, especially their implication in the Pakistani industry, we selected to theEFU-a multinational Insurance business. And another basic reason of choosing thisparticular topic was to see that what is insurances business all about and what is itssignificance in a country like Pakistan?PROSPECTIVE SIGNIFICANCE OF THIS PROJECT:
There are many national and international companies doing business in many differentfields, in countries all over the world. Insurance is the field, which is not fully utilized/expanded to its optimum in underdeveloped and developing countries like Pakistan.There is a big scope for this field in Pakistan and it can provide relief and source ofearning to Pakistani people.EFU is a multinational enterprise and has become a well-established company inPakistan. It is in this field for over five decades in subcontinent and later Pakistan(after1947).This project will not only be about the EFU Insurance Company and its performance butit will also give a complete insight of the insurance business. We will try to highlight thesome of the important aspects of insurance business.BACKGROUND:In the early 30s of the 20th century, under the inspiration of the Quaid-e-AzamMohammad Ali Jinnah, there began to appear signs of economic renaissance of theMuslims of India. Shipping, Airline, Banking and Insurance companies made their debut.In 1932, Mr. Ghulam Mohammad, a far sighted man, established Eastern Federal UnionInsurance Company (EFU) with financial assistance from the Aga Khan III and theNawab of Bhopal. Mr. Abdur Rehman Siddiqui became the founder chairman. Thecompany was originally registered at Calcutta and operated in India (undivided) andBurma.In 1947, on the birth of Pakistan, EFU found a new home in a new country. In Pakistan,EFU rapidly established itself as a progressive and innovative insurer. It gave theemerging insurance industry the leadership, the manpower and the drive needed to growin a situation where at one time, three-fourths of insurance was held by foreigncompanies.
By 1961, EFU had become the flag bearer of Pakistans insurance industry on the worldstage, and the largest life company in Afro-Asian countries (excluding Japan) under theleadership of Mr. Roshen Ali Bhimjee. It remained so until 1972 when Life Assurancebusiness in Pakistan was nationalized. Thereafter EFU operated solely as a GeneralInsurance Company, and was subsequently renamed EFU General Insurance Limited.Now EFU General is the second largest non-life insurance company in the country andthe mother company of other insurance organizations of EFU Insurance Group.In June 1990 the Government of Pakistan decided to allow Life Assurance business inprivate sector also. On 18 November 1992, EFU Life was granted a license to carry onlife assurance business. It started operations immediately with Group Life products and inMarch 1994 launched its Individual Life products. EFU entered the field of life assurancewith the focus on the changing needs of the population. The company is committed toprovide its policyholders with solutions to the problems of todays complex and rapidlychanging financial environment by introducing innovative, and modern products.In March 2000, Allianz Aktiengesellschaft (Allianz AG), a global leader in the insuranceindustry with an active presence in 70 markets across 5 continents and EFU Group signeda joint venture to form a new company for providing health insurance cover to the peopleof Pakistan. Allianz EFU Health Insurance Limited, approved by the Government ofPakistan, is the first specialized health insurance provider in the country and aims to playa pivotal role in developing the health insurance market in Pakistan.Traditionally the EFU name has become synonymous with progressiveness and promptclaim settlement and now the EFU being the largest insurance group provides a full rangeof general, life and health insurance services.EFU TODAY:Today EFU continues to be a leader in the insurance industry in Pakistan: • EFU GENERAL INSURANCE LIMITED is Pakistans pioneer general insurer with the industrys highest premium growth in 2003 of Rs. 86 crores.
• EFU LIFE ASSURANCE LIMITED is Pakistans largest private sector life insurance company with over 60% market share. • ALLIANZ EFU HEALTH INSURANCE LIMITED is Pakistans first specialized health insurer protecting over 320 groups and 100,000 persons.EFU Group is one of the few Pakistani organizations run totally by professionalmanagement. Another unique feature of EFU is a voluntary review mechanism byprofessionals of international repute. EFU has taken Mr. Wolfram W. Karnowski, whoretired at a very senior level from Munich Re, on its Board of Directors. It has appointedMr. Michael J de H. Bell, a very eminent UK based actuary (retired from Wyatt Watsonsand chairman of a UK based life company). EFU has the services of Mr. S.C. (Hamid)Subjally, who retired from a very senior position from Assicurazioni Generali, Dubai,UAE. The independent reviews by these professionals enable the group companies tokeep abreast of international changes in the industry as well as ensure that managementadopts the best international practices.Another pillar of EFUs strength is a very close and long term (over 50 years) relationshipwith its main reinsurer, ‘Munich Re’, the largest reinsurance company in the world andthe strong support of Allianz Aktiengesellschaft (Allianz AG), a global leader in theinsurance industry.HIRARCHICAL CHART OF THE ORGANIZATION: Rafique R. Bhimjee Chairman Saifuddin N. Zoomkawala Managing Director & Chief Executive Hasanali Abdullah, F.C.A. Mahmood Lotia, A.C.I.I. Deputy Managing Director & Deputy Managing Director Corporate Secretary
DATA PROCESSING DEPARTMENT: Syed Ahmad A. Haq, M.Sc. Executive Director Abdul Hameed Qureshi, M.Sc. Senior Vice President Masroor Hussain Vice Mohammad Kamil Khan Mohammad Nasir Vice President Vice President President
ENGINEERING, BOND, MISC. & LAW DEPARTMENTS: Afaq Ahmad, A.C.I.I. Executive Director Aftab Fakhruddin, B.E. Executive Vice President (Engg.)Aamir Nayab Ahmed, B. Altaf Ahmed Siddiqui Abdul Hafeez, LL.B. Arch. Vice President Vice President Vice President (Law)(Engg. Claims & Bonds) (Miscellaneous) Khurram Nasim Assistant Vice President
MARINE DEPARTMENT: A. Razzak Polani Executive Director Javid Niaz Khan, M.A., A.C.I.I. Assistant Executive Director Jawahar Ali Kassim Senior Vice President Mohammad Ilyas M. Sohail Nazir, M. ScBadar Ameen Sissodia Assistant Vice President (Econ.), A.C.I.I. AssistantAssistant Vice President Vice President
FINANCE DEPARTMENT: Hasanali Abdullah, F.C.A. Deputy Managing DirectorAltaf Qamruddin Gokal, A.C.A. Syed Mehdi Imam, M.A. SeniorSenior Executive Vice President Executive Vice President M. Mubashirullah Khan Executive Vice President Aslam Abdullah Ghole, F.C.I.S. Vice President Qasim Ali Mohammad Vice President Zakaria Suleman Vice President
FIRE DEPARTMENT: Khurram Ali Khan, B.E. Senior Executive Vice PresidentThomas Leo Fernandez Executive Vice President (Fire Claims) Kamran Arshad Inam Vice President Mohammad Arshad Khan Assistant Vice President Shahkar Hasan Khan, A.C.I.I. Assistant Vice President Syed Abid Raza Rizvi, M. Com. Assistance Vice President Syed Ahmed Hassan, M.B.A. Assistance Vice President
MOTOR DEPARTMENT: A. Razzak Polani Executive Director Jehanzeb Karamat Executive Vice President Imran Ahmed, B.E., Mahmood Jafri Senior M.B.A., A.C.I.I. Senior Vice President Vice President Baqar Aneel Jafari Assistant Vice President STATISTICS & CREDIT CONTROL DEPARTMENT: Muhammad H. Hashim Vice PresidentSyed Saghirul Hasan Rana Zafar Iqbal Rao Abdul HafeezAssistant Vice President Assistant Vice President Khan Assistant Vice President