Pakistan has significant potential to expand insurance coverage among underserved households, farmers, workers and small businesses, according to Michael J. McCord, Managing Director of the MicroInsurance Centre at Milliman. He made the remarks during a Securities and Exchange Commission of Pakistan (SECP) Talk Series session titled “Inclusive Insurance: Global Insights,” which brought together representatives from the insurance industry, development sector, students and senior officials from the regulator.
McCord highlighted the need for insurance providers to design products that are affordable, easy for consumers to understand and responsive to their actual financial needs. He said that expanding insurance coverage requires more than simply making products available, with consumer trust, timely claims settlement and accessible delivery mechanisms playing an important role in encouraging people to use insurance services.
The MicroInsurance Centre at Milliman executive also emphasised the importance of digital solutions in widening access to insurance. Digital channels can help insurers reach customers who may have limited access to traditional financial and insurance services, particularly in underserved communities. Easier digital access can also support the distribution of insurance products and improve interactions between customers and providers.
Timely settlement of insurance claims was identified as another important factor in building confidence among consumers. For households and small businesses facing financial shocks, the value of an insurance policy depends significantly on whether claims can be processed and settled efficiently when coverage is needed. Strengthening this aspect of the insurance experience can contribute to greater public confidence and support broader adoption of insurance products.
SECP Commissioner Imtiaz Haider highlighted the role of microinsurance in helping low-income families, farmers and small businesses manage financial shocks and protect their livelihoods. These segments can face significant financial exposure from unexpected events, while their ability to absorb losses may be limited. Accessible insurance products can therefore provide a mechanism for managing risks that could otherwise affect household income, agricultural activity or the continuity of small businesses.
The discussion placed particular importance on expanding insurance access beyond segments that are already well served by conventional insurance products. Farmers, low-income households and small enterprises can face different risk profiles and affordability constraints, requiring insurance providers to develop products suited to their circumstances. The focus on microinsurance reflects the potential for smaller and more accessible insurance solutions to reach a wider section of the population.
SECP Chairman Dr. Kabir Ahmed Sidhu said the regulator is working to support the development of Pakistan’s insurance market through digitalisation, support for digital insurers, accessible insurance products and stronger consumer protection. These areas form part of a broader effort to make insurance services more accessible while strengthening the regulatory environment surrounding consumers and insurance providers.
Sidhu also highlighted the Insurance Bill currently before Parliament, saying that the proposed legislation could significantly modernise the sector’s legislative framework and support its expansion. Changes to the legal framework can influence how insurance companies operate, how new digital business models develop and how consumers interact with insurance providers. The proposed legislation therefore remains an important part of the sector’s regulatory development.
Digitalisation was a recurring theme during the discussion as the insurance industry considers ways to reach customers more efficiently. Digital insurers and technology-enabled distribution channels can potentially reduce barriers related to access and convenience, particularly for customers who may not regularly interact with traditional insurance offices or agents. At the same time, digital expansion requires appropriate consumer safeguards to ensure that customers understand the products they are purchasing and have access to effective mechanisms for addressing complaints and claims.
The SECP Talk Series session provided a platform for international and domestic perspectives on inclusive insurance, bringing together industry representatives, development-sector stakeholders, students and senior officials. The discussion highlighted the need for cooperation between regulators, insurers and other stakeholders to expand coverage while maintaining affordability, transparency and consumer protection.
Pakistan’s insurance market therefore has an opportunity to reach a broader customer base by combining accessible products with digital delivery, efficient claims settlement and stronger consumer protections. The comments shared during the SECP session indicate that expanding insurance coverage will depend on addressing both affordability and trust while creating products that respond to the needs of households, farmers, workers and small businesses.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.