Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has recommended the establishment of insurance pools as a strategic initiative to advance the nation’s risk management capabilities, in alignment with the “Insured Pakistan” 5-year Strategic Plan.

According to Securities and Exchange Commission of Pakistan announcement issued on 31 July 2024, the newly released report, “Insured Pakistan: Pools Dynamics,” outlines a detailed framework for creating insurance pools that would consolidate risks across various sectors such as disaster, energy, and agriculture. These pools are designed to manage large-scale risks that exceed the capacities of individual insurers, both financially and technically.

The report evaluates the current insurance landscape in Pakistan, which remains underinsured despite facing significant risks. It highlights the importance of insurance pools in providing broader coverage and protection by efficiently managing these risks. An action matrix included in the report details the roles and responsibilities of diverse stakeholders involved in this initiative.

Commissioner of Insurance, Aamir Khan, stressed the importance of these specialized risk pools, noting that systematic pooling of risk and resources would allow the government, the insurance industry, and policyholders to better mitigate and manage large-scale risks. The report was initially presented at the International Insure Impact Conference 2023 in Karachi and has since been revised following extensive stakeholder feedback.