ICON is honored to showcase the journey of success of Mr. Taher G. Sachak MD & CEO, EFU Life. An icon who has revolutionized the landscape of the life insurance industry, a pioneer who has brought innovation to the forefront and a business leader that has played an integral role in building the foundation of the private life insurance industry.
It’s indeed an honor to be amongst the top icons of Pakistan, how do you feel about it?
It’s humbling to be recognized amongst the thought leaders in Pakistan. I take great pride in playing my part in the development of the life insurance industry and most importantly helping provide employment opportunities to thousands of individuals that are working under the EFU Life umbrella and the fact that as an organization we have contributed to helping transform lives for the better.
From British Civil Service to a career in life insurance, what made you switch your profession?
I was in the UK Civil service for 5 years in the Department of Health and Social Security. I was moving from London to Bristol, due to family commitments and as I was not able to get a transfer within the Civil Service, an acquaintance of mine, who was working for a Company called Allied Dunbar, said, ‘look, before you get yourself a “proper” job, why don’t you join life insurance? Well I did!– and I was out selling for nearly two years before I joined that Company’s Training and Development Department.
Our late founding Chairman, Mr. Roshen Ali Bhimjee and I had met while I was living in London.When he obtained the license for the first private sector life company to operate in the market, he asked me to come on a consultancy basis for two weeks to help him put together a business plan, design products and help establish the distribution channel blueprint. Those initial two weeks have now extended to over 28 years! The rest as they say is history!
Tell us about your role as the Chairman of the Executive Committee of Pakistan Insurance Institute?
The Pakistan Insurance Institute (PII) was set up in 1951 by the insurance fraternity of Pakistan to promote education and knowledge of insurance specifically within the industry and generally create value for the larger economy.
My role as the Chairman of the Institute has been about promoting our industry, bringing the local and international fraternity together, to have a more concerted effort from insurance companies, brokers, reinsurers to pool their knowledge and sharing of best practices.
PII has been instrumental in building knowledge resource amongst Insurance Professionals, keeping a close eye on insurance regulation and supervision needed to respond to industry changes. Pakistan Insurance Institute and its fraternity recognizes its responsibility and the active role it must play with regards to the evolving risks that concern the Insurance Industry.
Continuing Professional Development (CPD) is another essential area in which PII is working continuously to upgrade the knowledge base and enhance the skills of insurance professionals. The Institute arranges insurance-related and management-related educational courses, workshops, and seminars for insurance professionals on a regular basis. The Institute conducts certification courses for insurance agents, surveyors, and Takaful operators, and also offers a one-year postgraduate diploma in insurance in affiliation with the University of Karachi. Additionally, PII has been hosting international conferences on insurance every alternate year since 2010, which is a flagship event for the insurance industry.
How has your journey been with EFU Life Assurance Ltd.
When I took charge of the Company, there were only ten employees then. We have now grown to over 10,000 employees across 350 locations in Pakistan. We are currently managing funds in excess of Rs. 150 billion, which is indicative of how far we’ve come.
It’s been a very enriching journey to see the EFU Life family grow, the job creation that we’ve enabled, our promise to deliver on their career growth, and ultimately seeing it translating into their lives and wellbeing.
What are the future prospects of EFU Life Assurance Ltd.?
EFU Life is a brand that has a very rich legacy. It was one of the first private life insurers to be set up in Pakistan after privatization in 1992, and it has been instrumental in building the foundation of the insurance industry. Considered as pioneers in the life insurance business, EFU Life has always spearheaded new ideas in the industry. The concept of unit linking was first introduced by us in 1994 and today the life business is primarily unit linked. Product and service innovation has been integral to how we operate, introducing life benefits for the first time in Pakistan, such as Critical Illness cover, Education Planning solutions and Pension Plans. We were also the first Company to have received the license to operate our Window Family Takaful operations.
As a leading life insurer in Pakistan, we take pride in facilitating the growth of the industry. Despite the many challenges faced by the industry in terms of lack of awareness about life insurance, the low literacy rate, the ongoing changes in the economic and regulatory policies, and the recent COVID-19 pandemic which played havoc not only in Pakistan but globally as well, EFU Life continued to grow with a clear and strategic approach to risk mitigation, product innovation, digitalization of processes and strengthening of the distribution footprint.
Although the pandemic was detrimental to the growth and expansion plans of the industry, and the effects could last and recur over the years, we are positive about the life insurance industry’s prospects for the future, and we continue to maintain an optimistic outlook for the next 5 years.
Financial inclusion will remain the focus of the industry as well as the Government. Expansion of the insurance safety net to a larger population through creating efficiencies in the existing distribution channels as well as exploring new channels and market segments will occupy a significant role in the industry’s efforts in the future. Investment in front-end and back-end automation as well as using technology as an enabler in various business functions will continue. Product innovation to cater to evolving customer needs will also be at the forefront of the industry’s initiatives. Enterprise Risk Management and Compliance will have additional focus over the next few years.
The Company is also optimistic about the growth of Takaful business and expects takaful outreach to expand and contribute positively to increasing the size of the insurance pie.
How do you think a common man of Pakistan perceives the concept of life insurance?
There are various preconceived notions about life insurance. The mindset of the people a few years back was that life insurance is just about the death benefit, however that myth by and large has been broken, as insurance Companies have been actively marketing lifestyle benefits such as planning for the child’s financial future through education and marriage plans, promoting retirement planning, critical illness products, etc.
However, there are many challenges that still need to be addressed, as people in Pakistan do not generally have longer term saving mindset. They seek short term returns with a reluctance to save with a medium to long term horizon.
One of the biggest challenges however is that life insurance does not factor into most peoples’ priority set. There is a growing middle-class population, but the inflationary pressures have directly impacted their disposable income, making them feel life insurance to be more of a luxury and not affordable by the common man. In addition to this, there is a section of the population, that deems life insurance as “unislamic”. The advent of Shariah compliant Takaful solutions has in a way addressed this particular mindset, but still poses a challenge.
There is one thing that has changed in the market dynamic post COVID-19 Pandemic and that is a natural realization for the need to have a safety net. With the rising middle class and the “youth” comprising over 60% of the population, it gives us an opportunity to penetrate the untapped market.
How do you perceive the current economic situation of Pakistan?
The economic climate of Pakistan is challenging to say the least, caused largely by the political instability with many of the past governments not having served their full term in the office.
We all know the current state of affairs with respect to inflation, the current account deficit, etc and I feel it would be counterproductive for me to get into the details of that.
Having said that, I am hopeful. Demographically, Pakistan is amongst the few countries in the world with a young population; 60% of the 220 million+ individuals are under the age of 25 years. This is the future workforce that in the next few years will contribute to the economic growth and prosperity of the country.
Within the socio-economic pyramid, approximately 30% of the population lies in the lower-middle and middle-class segments.
This growing class is increasingly becoming aware of the general spectrum of financial services, including banking, mutual funds and insurance. These two factors – a young population and growing middle class alone point towards the massive opportunities for fulfilling new and evolving insurance needs and thus creating an environment conducive for growth of the life insurance sector and the economy of the country.
What is your management style?
I strongly believe in empowering the team. It’s important that people are aligned to the Company’s vision and feel they are contributing to the bigger picture. At EFU Life, there is open communication across the board, and various forums on which our teams are given the opportunity to share their ideas and thoughts.
I think as a leader you have to walk the talk- you can’t say one thing and be seen to be doing something else, so you have to be a role model in terms of the values that you want people to follow. Be straight with people, don’t manipulate! Sometimes people try to act over smart, but others see through you, so be honest, have integrity, work hard, and continue to stay positive. I generally look at life as a glass half-full, rather than half-empty.
A piece of advice for the younger generation?
60% of our population is under 25 years. That is either tremendous human capital, or a huge burden if not capitalized properly. We as a country, unfortunately, have not done a good job in developing the potential of our youth. As a society we need to take charge of our own destiny. Too many people are waiting for someone else to take charge and make a difference before they get involved! Any change needs to start with you, no matter how small. Do not wait for others, make a difference and leave a legacy.
My advice to all is, “Be positive; believe in yourself and have high expectations. Do not listen to those who tell you that you cannot achieve your goals. Dream big, work hard to achieve your goals because the only person standing in your way to success is you.”
