Islamabad, November 14, 2023 – The Securities and Exchange Commission of Pakistan (SECP) is set to embark on an ambitious journey to elevate the premium of the insurance sector by approximately 130 percent, targeting a substantial increase from the existing Rs 533 billion to Rs 1.22 trillion within the next five years, concluding by fiscal year 2028.
Aamir Khan, SECP Commissioner for Insurance and Information Technology, outlined this vision during a workshop on Tuesday, emphasizing the commission’s commitment to fortify the insurance sector and enhance coverage across the nation.
Addressing the workshop themed “Journey to an Insured Pakistan,” Aamir Khan underscored the imperative need for growth and inclusivity within the insurance sector. Presently, only 3.3 percent of the total population, amounting to 7.8 million individuals, possess life insurance. Similarly, out of the 30 million registered vehicles, a mere 3 percent (0.9 million) are insured. Aamir Khan highlighted these statistics to underscore the vast untapped potential within the insurance market.
The workshop, organized by SECP, aims to strike a balance between safeguarding policyholders and fostering industrial growth through regulatory excellence. A significant revelation during the workshop was that out of the total 32 million registered properties, merely 0.5 million are currently insured, indicating a substantial growth opportunity in this segment.
In an effort to further catalyze the development of the insurance sector, the SECP is gearing up to host the International Insure-Impact Conference 2023 (IIC 2023) in Karachi on December 13 and 14, 2023. The conference, themed “Journey to an Insured Pakistan,” will facilitate discussions and presentations focusing on inclusivity, innovation, and resilience within the insurance industry.
Waseem Khan, SECP Director of Insurance and Policy, echoed the importance of insurance as a risk transfer tool during his presentation. Currently, there are a total of 10 million policies, with 8 million dedicated to life policies constituting 68 percent, and 178 billion dedicated to non-life policies making up the remaining 32 percent. Pakistan hosts 42 insurance companies, according to Khan.
The protection of policyholders remains a focal point for the SECP in the next five years. The strategic direction outlined for 2023-2028 emphasizes the transformation of the insurance landscape, modernization of the legal framework, facilitation of digitalization, and encouragement of collaboration through effective use of Fintech, data sharing, and alternate delivery channels.
As the SECP propels this comprehensive plan into action, the aim is not only to elevate the premium figures but also to fortify the insurance sector’s role as a key player in the country’s economic growth, fostering innovation and ensuring the protection of policyholders.
