SECP publishes 2023 Insurance Industry Statistics

Morning! Someone asked what we're dressing up as for Halloween. We said 'clowns’ because we were out enjoying the “fresh air” while feeling that weird scratch at the back of our throats. Hello, smog season. Didn’t see you there (literally).

In this week’s edition: 

🤑 Alibaba is a bit spoiled

🛡️ All about insurance industry in 2023

💻 It’s eid for the flashy-MacBook-bros

🌊 Deep sea doesn’t spare anyone

- The Itla Squad 💼

Business

Global 🌎️

Alibaba is a bit spoiled

Imagine having so much money that you could afford to be lazy and not worry about legal work—like Alibaba, which recently agreed to pay $433.5 million to settle a class-action lawsuit simply because it didn’t want to bother with the hassle of going to court.

The lawsuit claimed the company misled investors about its business practices (Alibaba denies any wrongdoing, obviously).

The details:

• The lawsuit alleged that Alibaba forced merchants to sell only on its platform and punished those who sold on competitors' sites.

• The lawsuit, filed in March 2023, accused Alibaba of making misleading statements are said to have artificially raised Alibaba's stock price, resulting in losses for investors when the truth came out.

• Alibaba allegedly continued these practices even after agreeing to stop them in July 2020 with China's market regulation agency.

Way forward: Investors could have claimed up to $11.63 billion in damages if the lawsuit had continued. This settlement shows the legal challenges big tech companies face and highlights the need for following the rules to keep investors' trust.

TLDR: Alibaba is facing a lawsuit for allegedly misleading investors about its business practices, including forcing merchants to sell exclusively on its platform. Despite denying any wrongdoing, Alibaba may settle for $433.5 million to avoid further legal battles.

What else is new in news

✶Next time you’re begging your mom to buy McDonald's for dinner, it might be good to listen when she says, “We have food at home.”

The burger giant’s stock has dropped 7% after the Centers for Disease Control and Prevention (CDC) linked its Quarter Pounder burger to a deadly E. coli outbreak across 10 states in the US, resulting in one death.

The CDC, the U.S. agency responsible for protecting public health, suspects that slivered onions used in the burger—supplied by Taylor Farms—are the source of the contamination. In response, McDonald's removed these onions from its supply chain, and Taylor Farms issued a recall on potentially affected onion products.

Local 🇵🇰

We thought insurance was a scam?

The Securities and Exchange Commission of Pakistan (SECP) shared important information about the insurance industry for the year 2023, showing how it performed and grew over the year.

The details:

• The life insurance sector accounts for 64% of gross premiums, while non-life insurance (insurance for homes, cars, businesses) makes up 36%.

• Total assets grew from Rs 2,421 billion in 2022 to Rs 2,900 billion in 2023.

• The gross premium in 2023 was Rs 631 billion, reflecting a 14% increase from Rs 553 billion in 2022.

• Total claims paid were Rs 373 billion in 2023, compared to Rs 276 billion in 2022. Life insurance companies paid Rs 289 billion, and non-life companies paid Rs 84 billion.

Moving ahead: The report highlights that the life insurance sector plays a major role in the industry, making it useful for everyone involved to understand the trends and set future goals.

TLDR: The Securities and Exchange Commission of Pakistan (SECP) reported strong growth in the insurance industry for 2023, with the life insurance sector contributing 64% of total premiums.Total assets rose from Rs 2,421 billion in 2022 to Rs 2,900 billion, while gross premiums increased to Rs 631 billion, a 14% growth from Rs 553 billion.

News Flash

✶ Finance Minister Muhammad Aurangzeb announced that Pakistan has officially requested about $1 billion from the International Monetary Fund (IMF) to help low and middle-income countries tackle climate risks.

The IMF previously agreed to a $7 billion bailout for Pakistan and has additional funds available through its Resilience and Sustainability Trust (RST), which supports long-term climate-related initiatives like transitioning to cleaner energy.

Tech

Global 🌎️

The flashy folks in cafes will soon have new MacBooks to show off

For the ones who love showing off their MacBooks in every café, here’s good news: fresh models to flex are on the way.

Apple just launched its new M4 iMac, kicking off an exciting week with announcements about more updates for its computers and accessories.

The details:

• The new M4 iMac comes with Apple’s latest M4 chip, some fresh color choices, a better front camera for video calls, and a new screen option to reduce glare. It’s available to pre-order today, and will ship next week.

• Apple hinted at new MacBook Pro laptops, expected to come in 14-inch and 16-inch sizes. They will include faster M4 chips, and the base model might add an extra port for connecting devices and come with more memory than before.

• A redesigned Mac Mini is also expected, with an updated M4 chip and a smaller, sleeker look. This would be its biggest design change since 2010.

• Apple’s accessories, like the Magic Mouse, Keyboard, and Trackpad, are expected to switch from their old charging ports to USB-C, to meet new European rules requiring a common charger.

• Apple Intelligence, a new feature rolling out in iOS 18.1, adds AI tools to iPhone, iPad, and Mac, including new health features for AirPods Pro 2 (we covered the AirPods bit in this edition).

Way forward: Other updates for Apple devices—like iPads, Macs, Apple Watches, and Apple TVs—are also expected this week. Apple is rolling out new announcements daily around 11 AM ET / 8 AM PT, using videos and press releases.

TLDR: Apple launched the new M4 iMac with an upgraded chip, better camera, and fresh color options. Accessories like the Magic Mouse and Keyboard will switch to USB-C. Apple is also rolling out “Apple Intelligence” in iOS 18.1, adding AI features across its devices.

What else is new in news

✶Apple returned to the top five smartphone sellers in China in the third quarter, thanks to the iPhone 16 launch, but it still lagged behind Huawei. Apple held a 15.6% share of the market, down slightly from 16.1% last year, and its shipments to China didn’t grow compared to the same time last year.

Local 🇵🇰 

Pakistan’s internet infrastructure is in some deep shit - literally

Think you’ve got a fear of the deep sea? You haven’t seen what Pakistan’s internet infrastructure is going through.

The internet this year has been shi*ty to say the least, leaving millions frustrated and now a report is highlighting what allegedly happened and what the next steps are going to be.

The details:

• Pakistan had four major underwater cable failures this year that affected internet services nationwide.

  • In February, the SEAMEWE-5 cable was cut near Egypt.

  • On June 17, the SEAMEWE-4 cable was severed near Karachi, causing a loss of 1,500 Gbps.

  • On July 31, a fault in PTCL’s system made things worse.

  • The latest issue happened on August 17, when the AAE-1 cable failed, leading to a loss of 250 Gbps.

• The country relies on seven underwater cables for internet access, providing a total capacity of 10,146 Gbps.

• There are 473 internet service providers in Pakistan, including 293 fixed-line operators and 180 data service providers, all depending on these cables.

Way forward: The PTA has updated its rules to require better performance from internet providers like the internet providers must notify the PTA about any disruptions within two hours. In July 2024, some providers received warnings for not meeting the required standards.

TLDR: Pakistan faced four major submarine cable failures this year, disrupting internet nationwide. Key incidents included a 1,500 Gbps loss in June and a 250 Gbps loss in August. The country depends on seven undersea cables for its 10,146 Gbps capacity, with 473 ISPs affected.

Tech tour of news

✶According to the Pakistan Telecommunication Authority (PTA), cellular subscribers rose from 193.098 million in August to 193.346 million by September. 3G and 4G users increased from 137.920 million to 138.731 million, while Next Generation Mobile Services (NGMS) penetration grew from 56.72% to 56.96%.

More interesting Itla (اطلاع) we consumed:

📖 This interesting read by Scott Galloway looks at how much our lives are shaped by the circumstances we’re born into.

It’s a must-read that challenges the well-loved idea that hard work alone can shape our lives, pointing out that the “self-made” narrative often overlooks privilege, support, and luck.

His honest and self-aware inclusion of personal stories about family and friendships makes it even more thought-provoking to read and makes us think about our own ‘origin story’.