ISLAMABAD: Pakistan presents a substantial opportunity for the development of inclusive insurance, which can enhance social protection and contribute to achieving the Sustainable Development Goals, according to a recent presentation by Michael J. McCord, Managing Director of the MicroInsurance Centre at Milliman. Speaking at the SECP Talk Series session titled “Inclusive Insurance: Global Insights,” McCord outlined the potential benefits of extending insurance to underserved populations in the country.
According to Securities and Exchange Commission of Pakistan (SECP), Commissioner Insurance Imtiaz Haider underscored the role of microinsurance in aiding low-income families, farmers, and small businesses to recover from various adversities without exhausting their savings or selling essential assets. Haider reiterated SECP’s dedication to fostering an inclusive and reliable insurance sector, noting that affordable risk protection is crucial for financial inclusion.
McCord, in his lecture, discussed the potential to broaden insurance coverage for underserved households, farmers, workers, and small businesses in Pakistan. He pointed out that insurance can safeguard livelihoods, enhance financial resilience, and offer a broader social safety net. He stressed the importance of insurance products being comprehensible, affordable, and responsive to the actual needs of consumers. He also called on insurers to build public trust through timely and reliable claims payments, emphasizing that customer experience during claims processing shapes the industry’s reputation. McCord further highlighted the role of digital technology and alternative distribution channels in reducing costs and extending coverage.
SECP Chairman Dr. Kabir Ahmed Sidhu, who participated in the discussion, stated that the Commission is working towards developing the insurance market by digitalizing the regulatory ecosystem, supporting digital insurers, and promoting simple, accessible products. Dr. Sidhu mentioned that the Insurance Bill, currently under parliamentary consideration, aims to modernize the legislative framework and support market expansion. He added that SECP’s reforms are designed to encourage innovation and diversification of products while enhancing consumer protection.
The session was attended by representatives from the insurance industry, development-sector stakeholders, students, and senior SECP officials.