The Competition Commission of Pakistan (CCP) has called for stronger competition, greater digital adoption and faster claims processing to help expand Pakistan’s insurance market, where insurance penetration remains only 0.7 percent of GDP.
The recommendations were discussed at a meeting of the Competition Consultative Group focused on improving competition in the insurance sector.
The CCP said insurance density in Pakistan is around $12 per person, indicating substantial potential for the market to grow.
CCP Chairman Farid Ahmad Tarar said insurance is important for managing financial risks, mobilizing long-term savings and supporting economic activity. He said stronger competition could drive innovation, improve services and give consumers more choices.
According to a CCP presentation, Pakistan has 44 insurance companies, comprising 36 conventional insurers, seven Takaful operators and one reinsurer. The sector has around 10.4 million active policies.
The commission identified several challenges, including market concentration, barriers to new entrants, heavy concentration in bancassurance, limited public awareness, information gaps, disputes over claims, delays in settlements, limited innovation and weak digital infrastructure.
Waseem Khan, Director and Head of the Life Policy and Approval Department at the Insurance Division, highlighted digitalization, enforcement of mandatory insurance requirements, expansion of agricultural insurance and the introduction of a risk-based solvency framework.
The meeting also discussed the Insurance Bill, 2026.
Industry representatives identified agriculture, small and medium-sized businesses, retail, microfinance, health, Takaful, microinsurance and rural areas as key areas for future growth.
Participants also called for improved insurance products, stronger reinsurance capacity, better data systems and wider adoption of digital tools.
The meeting highlighted the need for easier premium payments, quicker claims settlement, responsible sales practices, clearer disclosures and more effective complaint resolution.
Participants said better data could help insurers improve risk assessment, pricing, fraud detection and claims management. Digital tools could also make the process more efficient from purchasing policies to settling claims.
Tarar said the consultation would help identify areas where competition advocacy, regulatory coordination and policy changes could support the development of the insurance industry.
He said the broader objective was to create a more competitive and efficient insurance market while improving outcomes for consumers.
