ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmed Sidhu on Tuesday 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, Dr Sidhu said 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. It was noted that while the industry has assets of approximately Rs4 trillion and annual premiums of Rs708 billion, insurance penetration remains only 0.7pc of GDP.

`Only 0.85pc 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,` the SECP chief said.

The session brought together senior SECP officials and insurance industry leaders, including TPL Insurance CEO Muhammad Aminuddin, State Life Insurance Corporation of Pakistan Chief Executive Shoaib Javed Hussain, and EFU Life Assurance CEO Muhammad Ali Ahmed.

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 97pc 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 motorinsurance coveragebyupto2,000pc.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 Rs450bn in claims.

Life insurance and family takaful account for Rs462bn in annual premiums, Rs373bn in claims and assets of Rs3.30tr. The non-life insurance and general takaful segment has premiums of Rs245bn, claims of Rs70bn and assets of Rs720bn.ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmed Sidhu on Tuesday 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, Dr Sidhu said 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. It was noted that while the industry has assets of approximately Rs4 trillion and annual premiums of Rs708 billion, insurance penetration remains only 0.7pc of GDP.

`Only 0.85pc 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,` the SECP chief said.

The session brought together senior SECP officials and insurance industry leaders, including TPL Insurance CEO Muhammad Aminuddin, State Life Insurance Corporation of Pakistan Chief Executive Shoaib Javed Hussain, and EFU Life Assurance CEO Muhammad Ali Ahmed.

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 97pc 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 motorinsurance coveragebyupto2,000pc.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 Rs450bn in claims.

Life insurance and family takaful account for Rs462bn in annual premiums, Rs373bn in claims and assets of Rs3.30tr. The non-life insurance and general takaful segment has premiums of Rs245bn, claims of Rs70bn and assets of Rs720bn.