The SECP Insurance Sector Digitalization Initiative is set to transform Pakistan’s insurance industry. With a strategic plan, the Securities and Exchange Commission of Pakistan aims to enhance digital infrastructure and drive growth. This initiative focuses on integrating innovative technologies to streamline processes and improve accessibility, ultimately fostering a more efficient and competitive market.
A recent survey, mapping the Existing Digital Infrastructure of Insurance, reveals that most companies have yet to embrace significant digitalization steps. The report compares Pakistan’s insurance industry with global standards, highlighting areas of progress and neglect.
The survey notes that digitalization in Pakistan’s insurance sector is in its early stages, with only a few companies initiating digital efforts, primarily focused on distribution channels.
SECP’s roadmap integrates past and future digital initiatives with the national strategy. It includes the concept of a centralized insurance information bureau to strengthen governance and regulatory frameworks.
Commissioner of Insurance SECP Aamir Khan has stated that emphasized the urgent need for stakeholders to adopt mobile apps and innovative distribution channels to attract new policyholders.
Survey data indicates that digital channels accounted for Rs842 million of the total Rs553 billion insurance premium in 2023. However, only 10 out of 29 non-life insurers and 7 out of 11 life insurers offer digital product distribution through their websites.
The SECP’s proposed changes aim to drive digital transformation, fostering growth and innovation in Pakistan’s insurance sector.
