SECP chairman ties wider microinsurance to digital insurers and a pending Insurance Bill
At an SECP Talk Series session in Islamabad, a global microinsurance expert said Pakistan has room to extend cover to farmers, workers and small businesses.
The Securities and Exchange Commission of Pakistan says it is digitalising the way it regulates insurance, and that facilitating digital insurers and simpler products are part of its plan to widen cover. SECP chairman Dr Kabir Ahmed Sidhu made the case at a Talk Series session in Islamabad titled Inclusive Insurance: Global Insights, held on 5 October.
The speaker was Michael J. McCord, managing director of the MicroInsurance Centre at Milliman. He said Pakistan has significant potential to expand inclusive insurance. Products should be easy to understand, affordable and responsive to what customers actually need, he said.
Claims and digital reach
McCord urged insurers to build trust through timely and reliable claims payments. He also said digital technology and alternative distribution channels can lower costs and extend coverage.
Imtiaz Haider, the SECP's Commissioner for Insurance, welcomed participants. He said microinsurance can help low income families, farmers and small businesses recover from illness, accidents or natural disasters without using up savings or selling productive assets. Haider also reaffirmed the commission's commitment to an inclusive and trusted insurance sector.
Sidhu said the commission is digitalising the regulatory system, facilitating digital insurers and encouraging simple, accessible products. He said the Insurance Bill, which is before Parliament, would be a major step for the sector. He said the commission's reforms aim to encourage innovation, product diversification and stronger consumer protection. The audience included insurers, development sector groups, students and SECP officials.
Policies, gaps and complaints
An SECP report on micro and inclusive insurance, "Unlocking the Potential of Micro and Inclusive Insurance in Pakistan", gave a sense of the gap in 2024. About 12.56 million policies had been sold through microfinance banks and institutions, and 89 percent of them were credit life policies that cover the borrower's loan. Twenty insurers offered inclusive products, but only four were actively selling small ticket products digitally.
Since then the commission has licensed First Digital Takaful Company, a subsidiary of MedIQ, as a digital only general takaful operator. Onboarding, contribution payments, certificate issuance and claims all run online.
Claims are the other thread. An SECP report published in September counted 37,029 insurance complaints across the country's grievance forums in 2025. The commission proposed more insurance tribunals where they are needed, wider reach for the committees that settle small disputes, and one integrated digital system on which policyholders could file complaints and upload supporting documents. These are proposals to the Ministry of Law and Justice and the industry, not rules in force.
