SECP unveils survey results on digitalization in Pakistan's insurance industry

July 26, 2024 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has published the findings of its survey on "Mapping the Existing Digital Infrastructure of Insurance," which provide critical insights into the current state of digitalization in Pakistan's insurance sector.

While drawing comparisons between Pakistan’s insurance industry and that of other jurisdictions, the survey identifies areas of progress and those that are neglected.

It indicates that the insurance industry is still in its infancy stage of digitalization, evidenced by only a few companies starting their digital journey and digitalization efforts being primarily focused on the distribution side.

As such, majority of companies have yet to take significant steps towards digitalization.

Based on this comprehensive analysis, SECP published a report titled "Insured Pakistan through Digitalization: Gaps, Potential & Roadmap”, which outlines the roadmap to be followed in order to meet the objectives of the Insured Pakistan 5-year Strategic Plan.  

The roadmap outlines Pakistan's insurance sector's digital infrastructure, integrating past and future initiatives with the national strategy.

It also includes repositories for motor, health, inclusive, and national-level crop insurance programs, as well as digital portals for coinsurance and reinsurance payment and settlement, acting as an insurance clearing house.

Moreover, SECP is evaluating the concept of a centralized insurance information bureau to provide an overarching governance framework for these initiatives and is also working on amending the Insurance Ordinance to improve the regulatory framework and support digital infrastructure.

SECP’s Commissioner Insurance, Aamir Khan, in his message, stated that the current state of digitalization requires immediate attention from all stakeholders.

While the SECP is committed to modernizing Pakistan’s insurance sector, other stakeholders must join forces and advance toward a comprehensive digital insurance ecosystem.

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