Pakistan plans digital platform for insurance — Dawn
The Securities and Exchange Commission of Pakistan (SECP) plans to create a digital platform intended to make it easier for citizens to access insurance products and information about them. SECP Chairman Kabir Ahmed Sidhu stated this in Islamabad, Dawn reports.
According to Sidhu, digital transformation is necessary to expand insurance coverage, improve claims settlement and distribute affordable products to the public. The SECP is also promoting innovative consumer-oriented digital insurance products.
Low insurance penetration
The assets of Pakistan's insurance sector amount to approximately 4 trillion Pakistani rupees, while annual insurance premiums total 708 billion rupees. At the same time, insurance penetration stands at just 0.7% of the country's GDP.
Digital channels currently generate 0.85% of insurance premiums. The SECP chairman called this both a challenge and a significant opportunity for the industry. He also said that the regulator is introducing reforms for timely, transparent and fair settlement of insurance claims.
Sidhu noted that artificial intelligence and other emerging technologies are transforming business worldwide, so Pakistan's insurance industry needs to adopt them to remain competitive.
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Motor insurance
Separately, the SECP chairman drew attention to the limited enforcement of the requirement for compulsory third-party liability insurance for vehicle owners. In his assessment, around 97% of vehicles in Pakistan operate without insurance coverage.
The regulator is engaging with the Punjab provincial government to strengthen oversight through digital verification and enforcement. According to Sidhu, effective enforcement could increase third-party liability insurance coverage by up to 2,000%.
TPL Insurance CEO Muhammad Aminuddin said that coordinated action by the regulator and provincial authorities could provide insurance coverage for all vehicles by 2030. There are 42 insurers operating in Pakistan, and the sector has paid about 450 billion rupees in insurance compensation.
The life insurance and family takaful segment has 462 billion rupees in annual premiums, 373 billion rupees in payouts and 3.3 trillion rupees in assets. In the general insurance and takaful segment, annual premiums amount to 245 billion rupees, payouts to 70 billion rupees, and assets to 720 billion rupees.
