Core of Underwriting: Mr. Mehdi, with a distinguished 20-year career steering underwriting at major companies, you’ve witnessed the evolution of risk itself in Pakistan. Reflecting on this journey, what would you say is the most profound change in how a Chief Underwriting Officer must think about and manage risk today, compared to when you first started?
A: The most significant shift in underwriting has been the transition from static, rule-based judgment to real-time, data-driven risk analytics. Underwriting has evolved from backward-looking assessments to forward-looking risk prediction.
At TPL Insurance, the use of telematics, usage-based solutions like DrivePro, cyber intelligence, and advanced analytics allows us to price risk dynamically and intervene proactively. Today, the CUO’s role extends beyond pricing risk to actively shaping risk outcomes through technology and data.
Bridging Two Worlds: Having held senior positions in both General Insurance and Takaful companies, what are the most significant operational and philosophical differences in underwriting for each? Where do they converge?
A: The fundamental distinction between general insurance and takaful lies in the philosophy of risk—transfer versus mutual sharing. Conventional insurance prioritizes profitability through risk transfer, while takaful emphasizes collective risk participation under Shariah governance.
Despite these philosophical differences, both models converge operationally on underwriting discipline, pricing accuracy, governance, customer centricity, and regulatory compliance. Strong underwriting remains the common denominator.
Product Innovation Driver: In your role overseeing product development, where do the best ideas originate—from market analysis, customer pain points, regulatory changes, or technological capability? Can you share an example?
A: The best product ideas come from the intersection of customer pain points, market insight, technology capability, and regulatory readiness. At TPL Insurance, innovations such as DrivePro and Buy Now, Pay Later solutions emerged from identifying access and affordability gaps and addressing them through mobile-first platforms and disciplined underwriting. We have also introduced solar insurance, pet insurance, and micro products to respond to evolving customer needs. I believe innovation, when anchored in underwriting discipline, becomes a sustainable growth engine rather than a risk multiplier.
Risk Perception Shift: How has the profile of major risks (e.g., climate, cyber, supply chain) in Pakistan evolved over your career, and how has underwriting adapted? What emerging risk keeps you up at night?
A: The industry has moved beyond traditional motor and property risks into complex, interconnected exposures—cyber, climate volatility, supply chain disruption, and systemic shocks. Climate and cyber aggregation now represent material underwriting considerations.
The challenge is no longer identifying individual risks, but managing correlated exposures that can impact multiple portfolios simultaneously.
Balancing Act: How do you balance the technical rigor of underwriting with the commercial pressure to grow the book and the competitive market dynamics in Pakistan?
A: Sustainable growth requires a balance between commercial ambition and underwriting rigor. Capital protection and profitability cannot be compromised for volume-driven expansion.
At TPL Insurance, risk-based pricing, disciplined policy structures, and aligned performance metrics ensure commercial teams grow responsibly while preserving underwriting integrity.
Takaful’s Unique Proposition: Beyond the religious compliance, what unique risk-sharing advantages or challenges does the Takaful model present from an underwriting and claims management perspective?
A: Takaful offers more than religious alignment—it introduces transparency, shared responsibility, and ethical risk participation. However, it also demands higher governance standards in surplus management, claims allocation, and Shariah compliance.
When executed well, takaful broadens financial inclusion and strengthens trust among ethically conscious customers.
Tech as a Tool: Is technology (AI, IoT, drones) primarily a tool for efficiency in your processes, or is it fundamentally changing the nature of the risks you underwrite and the products you can offer?
A: Technology is redefining underwriting boundaries. AI, telematics, IoT, and automation enable real-time pricing, personalized coverage, and efficient claims processing.
These capabilities allow insurers to underwrite risks that were previously unviable and to deliver products aligned with modern consumer behavior.
Regulatory Landscape: What one regulatory adjustment in Pakistan would most empower insurers to innovate responsibly and increase insurance penetration?
A: A clear regulatory framework for digital and parametric insurance products would significantly accelerate innovation while ensuring consumer protection. This is particularly important for underserved segments such as agriculture, climate-linked risks, and micro-enterprises. Additionally, more effective enforcement of mandatory Motor Third-Party Liability insurance would help increase insurance penetration and expand the risk pool.
Legacy & Future: Looking at your career, what’s the most valuable lesson from the “traditional” way of doing things that must be preserved? And what practice are you most eager to leave behind?
A: The most valuable lesson from the traditional way of doing things is the importance of underwriting discipline and risk scrutiny. Rigorous evaluation, clear terms, and prudent risk selection have built the foundation for sustainable growth, and this approach must always be preserved.
On the other hand, I am eager to leave behind processes that rely solely on manual approvals and legacy systems, which slow decision-making and limit innovation. I believe the future lies in leveraging technology, data, and analytics to make underwriting faster, smarter, and more customer-centric—without compromising on risk integrity.
Vision for Penetration: Pakistan has low insurance penetration. From your unique vantage point, what is the single most critical lever—product, distribution, education, or regulation—to change this in the next decade?
A: From my vantage point, the single most critical lever to increase insurance penetration in Pakistan over the next decade is product innovation. Products need to be accessible, affordable, and tailored to the needs of underserved segments such as micro-enterprises, agriculture, and low-income households. Coupled with digital distribution and simplified onboarding, innovative products can bridge the gap between awareness and adoption, while regulatory support ensures trust and consumer protection.