Critical lending force contributing towards economic ,

                                            Critical analysis: Ø GAPS ININDUSTRY: Insurance industry  encompass of  life and non life insurance subsegments. In association to life business, general insurance has seen slothfulin expansion mainly due to average economic extension.  As Growth is closely connected with economicinsurance for general insurance products; while growth is more  a purpose of circulation efforts in lifeinsurance business .

In 2016 the sector witnessed a turn down in profitabilitydue to shrink in investment income, and raise in underwriting and managementexpenses . Claim ratio of industry has vanished down too .  In the rouse of dwindling market share and escalatingcompetition, the company stock does not do sound in 2015. Efu underperformedthe benchmark index for the majority of the year . Ø  GAPS IN THEORGANIZATION: Due to streamlining improvementpeople working in focused department frequently have trouble considering thebusiness as a whole and harmonization among them is frequently difficult to attainThe company faces the following gaps which became a cause for its detoration:·       De-emphasisof overall objectives.·       Overspecializesand narrow key points of key personal.

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·       Reducedcoordination between functions.·       sluggishadaptation to changes in environment.·       Undercuttingpricing strategy for competitors.·       Peopleof Pakistan are not more policy cognizant·       Religionand cultural Resistances.·       Awarenessabout insurance assistance is very less.

·        Loss due to heavy claims.  Ø   RESULTING EFFECTS ON ECONOMY: Insurance is the risk transfer instrumentwhereby the individual or the business enterprise can transfer some of the qualmsof life on the shoulder of other . All the people will desire to live a better,cleaner, contented and trouble-free life. In the peace insurance provides guardto trade and industry , which eventually contribute towards human evolution .

Asa result insurance is the nearly all lending force contributing towards economic, social and technological progress of man. Without insurance cover allindustrial , economic and social activity of the world will come to grindinghalt.·       Firstly,insurance like banking promotes savings to individual.·       Secondly,insurance promotes investment.·       Thirdly, the insured person can get loans against the security of insurance policy from  insurance company.·       Fourthly,insurance as we all know protects against the dangers to life and property. Ø  RECOMMENDATION:After having a thorough study onEFU, I have come up with the following suggestions that in my view, willdefinitely improve a few weaknesses in EFU observed by me. ·       SUPPLEPOLICIES: Efu should adopt flexible policies in the areas of recruitment,promotions , evaluation etc.

 ·        EVERLASTING HIRING: The fresh hiring should bemade permanent so that they are secured of their future. ·       JOBGUIDANCE : The EFU should place emphasis on the organization of effectivetraining and development program. ·       PREQUISITESAND ALLOWANCE: Its number should be increased for the employees to ensure thatthey put their body and soul in the jobs assigned to them . ·       IMPLEMENTATIONOF EFFECTIVE TECHNOLOGY: No doubt, the technologies used at EFU proved fruitfulbut there is always a room for improvement I would suggest EFU to move towardslatest innovations of technology. ·       DECENTRALIZATION:Should form team based organization              


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