Only 3% of vehicles in Pakistan currently have insurance coverage, leaving 97% of vehicles uninsured, according to TPL Insurance CEO Muhammad Aminuddin.
Speaking at a Securities and Exchange Commission of Pakistan (SECP) talk series focused on the development and digitalization of the insurance market, Aminuddin highlighted the low level of motor insurance coverage in the country.
SECP Chairman Dr. Kabir Ahmed Sidhu said Pakistan’s insurance sector remains at an early stage of digitalization. Only 0.85% of insurance premiums are currently generated through digital channels.
He said greater adoption of digital insurance products could make coverage more accessible while improving transparency and consumer confidence.
Sidhu revealed that third-party motor insurance in Sindh has increased by up to 2,000% over the past six months. The SECP is also discussing the expansion of third-party motor insurance with the Punjab government.
The regulator is developing a digital system to verify motor insurance and enforce coverage requirements. It is also working on reforms aimed at ensuring that insurance claims are settled fairly and within a reasonable timeframe.
The SECP chairman said the regulator plans to launch an “Insured Pakistan” digital platform to promote insurance services across the country. He also called for simpler and more user-friendly insurance products to encourage wider adoption.
Aminuddin said the SECP’s initiatives regarding third-party motor insurance could help increase insurance coverage to all vehicles by 2030.
He also highlighted the growing role of artificial intelligence in the insurance industry. According to him, insurance companies will need to adopt modern technologies to remain competitive, with AI potentially helping insurers improve products, assess risks and accelerate claims processing.
The session was attended by senior SECP officials and representatives from the insurance industry, including State Life CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed.
The latest figures highlight the significant gap in Pakistan’s motor insurance market and the potential for digital platforms and regulatory reforms to increase coverage in the coming years.
