ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is considering amending the Insurance Ordinance to establish a centralised insurance information bureau to enhance the regulatory governance framework.

A recent survey titled ‘Mapping the Existing Digital Infrastructure of Insurance,’ published by the regulator, provides critical insights into the current state of the insurance sector. It has highlighted that the majority of companies have yet to take significant steps towards digitalisation.

The survey compares Pakistan’s insurance industry to other jurisdictions and identifies areas of progress and neglect.

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

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

The commission was also evaluating the concept of a centralised 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.

Commissioner of Insurance SECP Aamir Khan has stated that the current state of digitalisation requires immediate attention from all stakeholders, such as mobile apps and other innovative distribution channels, to develop new products and attract fresh policyholders.

Survey data showed that the premium distributed through digital channels was Rs842 million, out of the total insurance premium of Rs553 billion in 2023.

At the same time, only 10 companies out of 29 non-life insurers offer one or more insurance classes through their websites, while in the life insurance sector, seven companies out of 11 life insurers offer digital distribution of their products through their websites.

Published in Dawn, July 28th, 2024