The Securities and Insurance Coverage Exchange Commission of Pakistan (SECP) unveiled a five-year strategic plan for the insurance industry, aiming to increase the number of insured people to 15 million and total premium to Rs1.3 trillion by 2028.
Currently, Pakistan has 42 operational insurance companies with a total premium of about Rs552 billion and 10 million active policies. However, the insurance penetration remains low across various sectors. Additionally, crop insurance is utilized by less than 10 percent of 8 million farmers, and less than 500,000 of the 32 million registered properties are insured.
Pakistan Aims for 15 Million Insured
SECP Chairman Akif Saeed highlighted the five key areas of focus in the strategic plan: ease of doing business, legal amendments, taxation, digital aspects, and micro- and climate risks. Under the new plan, the country aims to increase the premium of insurance companies and enhance insurance coverage to about 15 million people. The target also includes doubling the number of insured people from roughly 8 million to 15 million by the end of the five-year plan.
Federal Minister for Finance Dr. Shamshad Akhtar emphasized the importance of the strategic plan in setting the tone for the future policy, legal, and regulatory landscape of the insurance sector. He stressed the need for a dedicated hub for the insurance sector to consolidate policy, legal, and regulatory frameworks, as Pakistan’s insurance penetration rate is currently below 1 percent, ranking among the lowest in the region. In comparison, countries like India and Sri Lanka have higher penetration ratios of 3.76 percent and 1.25 percent, respectively.
Expanding Insurance Coverage
The Securities and Exchange Commission of Pakistan (SECP) unveiled a five-year strategic plan for the insurance industry, aiming to increase the number of insured people to 15 million and total premium to Rs1.3 trillion by 2028.
Currently, Pakistan has 42 operational insurance companies with a total premium of about Rs552 billion and 10 million active policies. However, the insurance penetration remains low across various sectors. Additionally, crop insurance is utilized by less than 10 percent of 8 million farmers, and less than 500,000 of the 32 million registered properties are insured.
SECP Chairman Akif Saeed highlighted the five key areas of focus in the strategic plan: ease of doing business, legal amendments, taxation, digital aspects, and micro- and climate risks. Under the new plan, the country aims to increase the premium of insurance companies and enhance insurance coverage to about 15 million people. The target also includes doubling the number of insured people from roughly 8 million to 15 million by the end of the five-year plan.
Federal Minister for Finance Dr. Shamshad Akhtar emphasized the importance of the strategic plan in setting the tone for the future policy, legal, and regulatory landscape of the insurance sector. He stressed the need for a dedicated hub for the insurance sector to consolidate policy, legal, and regulatory frameworks, as Pakistan’s insurance penetration rate is currently below 1 percent, ranking among the lowest in the region. In comparison, countries like India and Sri Lanka have higher penetration ratios of 3.76 percent and 1.25 percent, respectively.
