2018

Jubilee Life
Insurance
Aun Ali, Umal Baneen,
Hamza shabbir, Zonaira

INSURANCE AND RISK MANAGMENT PROJECT ON

JUBLIEE LIFE
Jubliee life insurance

Submitted to : Mr. Tabbasum Riaz

Submitted by : Aun Ali, Umal Baneen, Hamza Shabir, Zonaira Tamoor
Roll no. : F14-26, F14-29, F14-31, F14-35
Department : Commerce
Degree Title : B.com (honors)
Semester : 7th (E)
UNIVERSITY OF PUNJAB JHELUM CAMPUS
Jubliee life insurance

Table of Contents
Introduction: ................................................................................................................................................. 4
Role of life insurance in the development of SME's ..................................................................................... 5
Jubilee life insurance Products and operations ............................................................................................ 5
Jubliee life insurance and Risk management: ............................................................................................. 10
Investment income ratio:............................................................................................................................ 10
Expense Ratio:............................................................................................................................................. 10
Loss Ratio: ................................................................................................................................................... 10
Combines ratio: ........................................................................................................................................... 11
Overall operating ratio:............................................................................................................................... 11
Statement of value addition: ...................................................................................................................... 12
Key Operating and Financial data: .............................................................................................................. 12
SWOT Analysis of Jubilee life Insurance ..................................................................................................... 15
Organization’s Market position/Market share along with other competitors share ................................. 16
Jubliee life insurance

Introduction:
Jubilee Life is a subsidiary of the Aga Khan Fund for Economic Development (AKFED),
Switzerland. AKFED is the economic development arm of the Aga Khan Development Network
(AKDN), a group of private, non-denominational development agencies seeking to improve
opportunities and living conditions in specific regions of the developing world.
Incorporated in Pakistan on the 29th of June 1995 as a Public Limited Company under the
Companies Ordinance 1984, Jubilee Life started its operations on 20 June 1996. Its shares are
quoted on Karachi Stock Exchange with a paid up capital of Rs. 627 Million.
Our affiliation with AKFED allows us to draw on its global experience and resources to provide
our clients in Pakistan with the best life insurance solutions available in the entire country. Our
clients can be secure in the knowledge that our operations are backed by an internationally
acclaimed organization with global reach.
With successful projects across Asia and Africa, AKFED is one of the worlds’ foremost private
development agencies active in the fields of industry, financial services, tourism development
and infrastructure. In Pakistan, this allows us to draw on the expertise and support of our sister
concerns, as listed below:
> The Aga Khan University Hospital
> Jubilee General Insurance Company (carrying out general insurance business)
> The Aga Khan Health Services
> Tourism Promotion Services (Chain of Serena Hotels)
> First Micro Finance Bank Limited
> Habib Bank Limited
> The Aga Khan Education Services
> Focus Humanitarian Assistance

Vision:

“Enabling people to overcome uncertainty”

Mission:

“To provide solutions that protect the future of our customers

Values:
Team Work
Integrity
Excellence
Passion
Jubliee life insurance

Role of life insurance in the development of SME's

It is safe to point out that life insurance has historically been an important method through which
individuals have been able to save and invest effectively for the longer term. By designing life
insurance products, underwriters have been able to accumulate large amounts of money from
across a large proportion of the population.

By pooling these savings from investors into large accumulations of investable funds, insurance
companies have been able to invest in a wider range of investments than individuals would have
been able to invest directly themselves. They have also been able to invest in larger scale and
more risky investment opportunities which tend to be more beneficial to the economy .because in
life insurance there is a regular or contractual nature to the payment of premiums by consumers,
the level and stability of personal saving is increased, compared to what would be the case if the
payment system is more unrestricted. This contractual nature of the premium payment system in
life insurance has been reinforced by insurance companies developing good marketing strategies
in order to encourage individuals to save. the investment of the premiums paid by policyholders
that the transmission of saving is fed through into the wider economy. The mechanism through
which this transmission takes place is the capital market. The range of investments in which an
insurance company can invest its funds within a given economy will depend of the degree of
development of the local capital market.

firstly, these long-term savings generated through life insurance can also be made available to
the public sector especially through the government. They can enable the government to fund
infrastructure projects which are vital for emerging economies, not only to underpin the growth
of domestic private sector companies but also encourage foreign direct investment to enter the
local economy. these capital expenditure decisions, both by the private sector and the
government, should lead to increase in the level of employment and an improvement in the
standard of living across the economy. Secondly the productive base of the nation increases, the
export potential of the country also increases, as well as allowing the country to supply more of
the goods that it currently imports from abroad. Not only is the balance of payments and foreign
exchange holdings improved, but the domestic exchange rate is also strengthened.

Thirdly there is a wider psychological advantage from encouraging the growth of domestic
saving within the country. This is because when the country generates its own domestic saving it
is less reliant on inward foreign investment. If domestic saving is too little, then the ownership of
the economy will gradually tend, directly or indirectly, to fall more and more under foreign
control. It is difficult to generalize on how life insurance products change and widen in scope as
the life insurance market matures. There are interchanges of economic, political and cultural and
commercial factors at work, which vary from country to country.

Jubilee life insurance Products and operations

Jubliee life insurance
Jubilee Individual Life Insurance Plans:

 Marriage Plans
 Retirement Plans
 Wealth Accumulation Plans
 Saving & Protection Plans
 Women Plans
 Rural Plans
 Health Plans
 Child Education Plans

These are the Some Popular Products of Jubilee Life Insurance company’s plans:

 Cardiac saving plan

 Edu. smart plus
 Zindgi
 Zaamin
 Optimizer plan
 POONJI retirement plan
 Wed. smart
 Hifazat
 Jubliee health shield

Cardiac saving plan

Features of this plan

 A life insurance amount, which will be paid to your family or loved ones in case of your
death (May God forbid).
 Your savings are invested in funds of your choice.
 Built-in cardiac financial assistance benefits to provide significant coverage for various
cardiac related treatments.
Jubliee life insurance

 Choice of various optional benefits and riders to enhance your coverage

 Option to invest your extra savings and top up your investments at any time during the
terms of your policy

EduSmart plus

EduSmart plus is a unit-linked endowment plan especially designed to accumulate funds on a

regular basis while enjoying life insurance protection. The fund accumulated through the plan
may be used for education (any marriage) of children or any other purpose.

Features of EduSmart plus:

 Plan your commitment the way you want

 Choose the investment fund according to your investment philosophy
 Grow your investment fund with superb investment strategies
 Top up your investment with extra funds that you may have
 Customize your protections with add on benefits
 Combat inflation
 Get rewarded for continuing the plan

Zaamin

Product Features

Zaamin assures that your family has a guaranteed level of life insurance protection to help you
cater to your financial needs that may arise on death of your wife. Zaamin will provide life
insurance protection of an amount (sum assured) up to 10 times of the basic plan premium
subject to a maximum of pkr 500,000

Benefits of Zaamin

 Accidental death benefit

 Add-on benefit
 Special waiver of premium

Jubilee health shield

Jubliee life insurance
Product Features

Health Insurance Plan Called Jubilee Health Shield, t provides you financial support and
assistance in case you or your family members have had a medical emergency but also provides
various additional built in benefits such as inclusion of Pre-existing conditions cementing further
that Jubilee Life cares for you and your family.

Optimizer Plan

Features

 The main concern for anyone these days is to ensure that their idle funds are invested in a
manner which brings high growth returns,
 so that their loved ones stay financially secure, stable and protected in times of financial
crises.
 To safeguard your loved one’s future and make sure no hindrance occurs in their plans,
Jubilee Life brings Optimizer Plan, an exclusively designed plan for High Net Worth
(HNW) Individuals.
 high investment opportunities so that they may continue enjoying the same luxurious
lifestyle as before, when faced with uncertainty of life.
 Grow your investment fund with superb investment strategies
 Top up your investment with extra funds that you may have
 Customize your protections with add on benefits

POONJI retirement plan

Product Features:

 Retirement doesn’t mean having to give up a regular income, and if you want a stress-
free retirement, then this is the plan for you.
 Poonji is a plan especially designed to provide you with funds at your retirement.
 The funds accumulated during the savings period will be available to you on retirement
so that you can enjoy your life without having to worry about income or compromising
on your lifestyle.
Jubliee life insurance
Wed smart

Planning your children’s weddings should be a labour of love, a time when the whole family
comes together to see your children start a family of their own. Why not make sure that this
precious time is spent in happiness and celebration rather than in wondering how to foot the
bills? By helping you plan for the big day, our Wed Smart plan allows you to focus on what’s
important: the happiness of your children as they embark on a new journey in life.

Hifazat

Hifazat plan helps you save money periodically so that you enjoy consistent returns and stay
secure in the most difficult of circumstances. It lets you think ambitiously and helps you achieve
goals and objectives; thus, ensuring a better tomorrow for you and your family.

Product Features

 You can choose the minimum amount of premium or a higher amount depending on your
financial capacity that you would make each year. You can pay the premium yearly, half
yearly, quarterly or monthly.
 You can decide the level of savings and protection you require depending on the goals
that you have in mind.
 You can select any of the optional insurance benefits to enhance protection.

Jubliee health shield

Jubilee health shield comes in 2 attractive packages that you can choose from as per your need
and convenience.

Both packages of jubilee health shield have different annual benefits as stated below:

Jubilee Health shield Shield Super shield

In-Patient 250000 500000
hospitalization benefits
Room Semi-Private Private
*Spouse & Children Cover Yes Yes
Jubliee life insurance

Jubliee life insurance and Risk management:

Insurance companies have been in the business of risk management for hundreds of years. The
latest trend towards risk management in banks is both new to insurance companies and very old
hat. New because it applies new techniques (at least new to the last half century) and old hat
because many risk management techniques are so old hat to insurance companies that they are
almost unconsciously performing them.
The Basle committee on Banking Supervision proposed a set of principles for the management of
interest rate risks by banks in 1997. These principles can be easily generalized to apply to all risk
management and to insurance companies. Here is a sampler of generalized principles:
1. Clear lines of responsibility for risk management. 2. Separation of risk takers and risk
managers. 3. Quantitative risk limits. 4. System for promptly reacting to positions that exceed
limits. 5. Risk management must apply to new products. 6. Focus on both earnings fluctuation &
economic value fluctuations. 7. Need to assess all material Risks. 8. Risk measurement system
should utilize generally accepted financial concepts and measurement techniques. 9. Well-
documented assumptions and parameters. 10. Need to measure risks under wide ranges of
underlying economic situations and regularly re-evaluate assumptions. 11. Stress testing to
evaluate extreme fluctuations and develop contingency plans. 12. Regular internal and
independent review of Risk Management system.
Life insurance firms have also been relying on more intensively on derivative products( Future ,
forward ,SWAP, etc) for hedging their financial risk exposure.
Investment income ratio:
The investment income ratio compares net investment income to earned premiums
Investment income ratio = Net investment income/Earned premiums

2016 0.401
2015 0.199
2014 0.277
2013 0.207
2012 0.220

Expense Ratio:
The expense ratio is equal to the company`s underwriting expenses divided by written premiums.
Expense ratio = underwriting expenses/ Premiums written

2016 1.860
2015 1.457
2014 1.068
2013 0.965
2012 1.154
Loss Ratio:
Jubliee life insurance
The loss ratio is the ratio of incurred losses and loss adjustment expenses to premiums earned.
Loss Ratio =Incurred Losses + Loss adjustment expenses/Premiums earned

2016 0.524
2015 0.689
2014 0.452
2013 1.279
2012 0.981

Combines ratio:
The combined ratio is the sum of the loss ratio and the expense ratio. A positive ratio indicates
an underwriting loss.
2016 2.384
2015 2.146
2014 1.52
2013 2.244
2012 2.135

Overall operating ratio:

The overall operating ratio is equal to combined ratio minus the investment income ratio. This
ratio measure the company`s total performance (underwriting and investment)
2016 1.983
2015 1.947
2014 1.243
2013 2.037
2012 1.915
Jubliee life insurance

Statement of value addition:

Key Operating and Financial data:

Jubliee life insurance

Vertical Analysis:
Jubliee life insurance

Horizontal Analysis:
Jubliee life insurance

SWOT Analysis of Jubilee life Insurance

The joining of experienced people, advance management, advance set up and facilities gave JLI
Ltd an edge over its competitors.

STRENGTHS:
 Enjoying economies of scale.
 Good will in the market.
 Strong financial position.
 Long standing clients.
 Experienced owners.
 Organization gives opportunity to this employee for career path.
 Have strong distribution channel in Pakistan.
 Variety of Products.

WEAKNESS:
 Majority of people are not well aware about JUBILEE Co. Ltd’s product, so it needs
extensive advertisement.
 Employees discriminate customers on the basis of their status.
 Improper human recourse management.
 Less Incentives to Lower level employees.
 The furniture available at the branch is not sufficient to occupy a larger number of people
at a time in the branch.
 Limited area covered (only major cities are insured).
 Lack of infrastructure.
 No segmentation of market.

OPPORTUNITIES:
 Used Latest IT Technology.
 Hire insurance experts from other countries.
 Explore unidentified market segments.
 Agriculture and live stock market.

THREATS:
 Change in government policies.
 The competition has become sever by the entrance of new companies.
 The decrease in the purchasing power of people in the current economic situation affecting
the business activity speed.
 Facing tough competition in market.
 New business practices rules and regulations by SECP / Government sectors.
 High risk in insurance business.
Jubliee life insurance

 Many new insurance companies are entering into the market which are backed by strong
banks that can create problems for JUBILEE.
 Govt. allowed foreign insurance companies to start business in Pakistan that can also affect
the whole procedure.

Organization’s Market position/Market share along with other competitors

share
The two largest private life insurers – EFU Life Assurance and Jubilee Life Insurance – had a
combined market share of 26%, which left the remaining four private companies with a
collective share of only 10%.
The increase of Jubilee Life gross premiums is in the range of 40% to 45% compared to
industry’s expected growth of 25% to 30%.