Pakistan’s insurance sector remains largely underdeveloped, with only 3 percent of vehicles insured and just 0.85 percent of insurance premiums generated through digital channels, officials said on Tuesday.

Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu shared the figures during an SECP talk series focused on the development and digitalization of the insurance sector.

The session was attended by senior SECP officials and insurance industry representatives, including TPL Insurance CEO Muhammad Aminuddin, State Life CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed.

Sidhu said greater use of digital insurance products could make insurance easier to access while improving transparency and consumer trust.

He said third-party motor insurance in Sindh had increased by up to 2,000 percent in six months. The SECP is also in talks with the Punjab government to expand third-party motor insurance coverage in the province.

The regulator is developing a digital system to verify motor insurance and enforce coverage requirements. It is also introducing reforms aimed at ensuring insurance claims are settled fairly and on time.

Sidhu said the SECP plans to launch an “Insured Pakistan” digital platform to promote insurance services and called for simpler, modern and user-friendly insurance products.

Aminuddin said around 97 percent of vehicles in Pakistan remain uninsured. He said the SECP’s efforts to expand third-party motor insurance could help achieve coverage for all vehicles by 2030.

He also highlighted the growing role of artificial intelligence in global businesses, saying insurers would need to adopt AI and other technologies to remain competitive. AI could also help improve insurance products, risk assessment and claims processing.