SECP chief highlights importance of digital transformation

Business Recorder reported that SECP Chairman Dr Kabir Ahmed Sidhu called digital transformation necessary for widening insurance cover, speeding up claim payouts and putting affordable policies within reach of ordinary citizens. Speaking at an SECP Talk Series session on Tuesday, he noted that the sector holds assets of around Rs4 trillion and collects yearly premiums of Rs708 billion, yet insurance penetration stands at just 0.7 percent of GDP.

Digital channels currently generate only 0.85 percent of premiums, which he described as both a challenge and a considerable opportunity for the industry. He announced an online platform called Insured Pakistan, meant to make insurance products and information easier to reach, and said reforms aimed at timely and fair claim settlement are being introduced. Highlighting weak compliance with mandatory third-party motor insurance, he said an estimated 97 percent of the country's vehicles run without the compulsory cover, and the SECP is working with the Punjab government on digital verification and enforcement.

Participants included TPL Insurance CEO Muhammad Aminuddin, State Life Insurance Corporation of Pakistan CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed. Hussain said the industry has 42 insurers and has paid roughly Rs450 billion in claims, while Ahmed noted that pension fund assets reached Rs156 billion by August 2026. The gathering agreed that digitalisation, artificial intelligence, stronger enforcement and faster claim processing could widen coverage.