SECP chief highlights importance of digital transformation

ISLAMABAD: Chairman Securities and Exchange Commission of Pakistan (SECP) Dr Kabir Ahmed Sidhu has said that digital transformation is essential to expand insurance coverage, improve claim settlement and make affordable insurance products accessible to the public. Speaking at an SECP Talk Series session on the development and digitalisation of Pakistan’s insurance market on Tuesday, Dr Sidhu said the industry has assets of approximately Rs4 trillion and annual premiums of Rs708 billion, yet insurance penetration remains only 0. 7 percent of GDP. “Only 0. 85 percent of insurance premiums are currently generated through digital channels, which shows both the scale of the challenge and the substantial opportunity available to the industry, ” he said. The session brought together senior SECP officials and insurance industry leaders, including Muhammad Aminuddin, Chief Executive Officer of TPL Insurance; Shoaib Javed Hussain, Chief Executive Officer of State Life Insurance Corporation of Pakistan; and Muhammad Ali Ahmed, Chief Executive Officer of EFU Life Assurance. Dr Sidhu said the SECP was promoting innovative, affordable and consumer-friendly digital insurance products. He announced that an “Insured Pakistan” digital platform would be established to improve public access to insurance products and information. He said important regulatory reforms were also being introduced to ensure the timely, transparent and fair settlement of insurance claims. Artificial intelligence and other emerging technologies, he added, were reshaping businesses globally, and Pakistan’s insurance industry must adopt them to remain competitive. Highlighting the limited implementation of mandatory third-party motor insurance, the Chairman said an estimated 97 percent of vehicles in Pakistan were operating without insurance coverage. He said the SECP was engaging with the Punjab government to strengthen implementation through digital verification and enforcement. Effective enforcement could increase third-party motor insurance coverage by up to 2, 000 percent. Muhammad Aminuddin said coordinated regulatory and provincial action could help bring all vehicles under insurance coverage by 2030. Digital integration of insurance records with vehicle registration and enforcement systems would make verification easier and improve compliance. Presenting an overview of the industry, Shoaib Javed Hussain said Pakistan has 42 insurers, while the sector has paid approximately Rs450 billion in claims. Life insurance and family takaful account for Rs462 billion in annual premiums, Rs373 billion in claims and assets of Rs3. 30 trillion. The non-life insurance and general takaful segment has premiums of Rs245 billion, claims of Rs70 billion and assets of Rs720 billion. He said the insurance industry could mobilise between Rs200 billion and Rs500 billion for infrastructure development, demonstrating its potential as a source of long-term capital for the economy. Muhammad Ali Ahmed highlighted Pakistan’s growing retirement-protection needs. He said pension fund assets had reached Rs156 billion by August 2026, representing growth of 333 percent since January 2021. However, active voluntary pension accounts stood at only 143, 000 as of December 2025, despite Pakistan having a working-age population of 134. 4 million. He emphasised the need to develop retirement plans, voluntary pension schemes, annuities and insurance-based long-term savings products. He said the development of long-term securities would further strengthen Pakistan’s pension market. Participants agreed that digitalisation, artificial intelligence, stronger enforcement, efficient claim settlement and innovative retirement products could significantly expand insurance coverage and strengthen the industry’s contribution to economic resilience. Copyright Business Recorder, 2026

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