Insurance industry to thrive on innovation, digitalization: Commissioner

March 13, 2024 (MLN): Innovation, digitalization, and data accessibility are the core objectives of the 5-year Strategic Plan for the growth and expansion of insurance industry, as highlighted by the Commissioner Insurance, Aamir Khan on Wednesday.

The Securities and Exchange Commission of Pakistan (SECP) held meetings with the insurance companies i.e. life and non-life separately, on digitization of the insurance sector in Pakistan, said a press release issued on the same day.

Aamir Khan apprised the industry’s representatives of the initiatives taken by SECP at digitalization front and SECP’s engagement with the insurance companies to launch an insurance policy finder and an auto insurance repository to facilitate policy tracking and enforce compulsory motor third-party insurance.

He also shed light on the industry's role in leveraging technology for improved customer journey and organizational efficiency and sought input from the participants for further advancements.

The representatives of life insurance companies highlighted the issues in existing regulations which were formulated with respect to physical distribution of saving products and currently acts as hinderance to digital distribution of the same products.

The representatives of non-life insurance companies emphasized the need of availability of data repositories, implementation of compulsory insurance, collaborations and information sharing for enhanced digitization of insurance sector, to pave way towards increased insurance penetration.

In the closing remarks, Commissioner Insurance informed of the initiation of working on the report covering suggested digital infrastructure and areas for end-to-end digitalization throughout the customer journey.

He also updated of the work done on Risk Based Capital Regime and initiation of the data collection exercise in this regard in coming days, which would be followed by a consultative session with the insurance companies in next week.

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