Govt moves to modernize insurance sector

August 29, 2025 (MLN): Pakistan’s insurance sector requires urgent modernization through wider coverage and an updated regulatory framework to support national growth, as emphasized by Federal Minister for Commerce Jam Kamal Khan.

He made these remarks at a briefing jointly organized by the Ministry of Commerce’s Insurance Wing and the Securities and Exchange Commission of Pakistan (SECP), where proposed amendments to the Insurance Ordinance, 2000 were presented for in-principle approval by the Federal Cabinet.

The proposed Insurance Ordinance (Amendment) Bill introduces reforms in four key areas: opening the market to greater competition, including foreign insurers and microinsurers; promoting ease of doing business, use of technology and new products such as disaster risk coverage; simplifying the law by shifting operational details to regulations; and strengthening supervisory oversight through a risk-based capital framework, solvency requirements, governance improvements, and enhanced SECP enforcement powers.

The amendments also aim to align the law with the Companies Act 2017 and the Federal Ombudsmen Institutional Reforms Act 2013 while bringing Pakistan’s insurance industry in line with global best practices.

Jam Kamal Khan added that a stronger insurance market would not only protect citizens and businesses but also mobilize long-term savings and investments, which are vital for sustainable economic development.

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