Pakistan has substantial room to expand affordable insurance coverage, particularly among low-income and underserved communities, speakers said at an SECP talk series.

Michael J. McCord, Managing Director of the MicroInsurance Centre, said Pakistan has a significant opportunity to develop inclusive insurance products for people who currently have limited access to financial protection.

SECP Commissioner Insurance Imtiaz Haider said microinsurance could help low-income households, farmers and small businesses manage financial losses caused by illness, disasters and other unexpected events.

He said access to affordable insurance can prevent vulnerable households from selling assets or taking other difficult financial measures when they face unexpected expenses.

McCord said insurance products need to be designed around the needs of customers and remain affordable and easy to understand if the sector is to reach underserved communities.

He also highlighted timely claims settlement and digital technology as important factors in building trust among customers and improving the reputation of the insurance industry.

SECP Chairman Dr. Kabir Ahmed Sidhu said the regulator is working to expand the insurance market by digitizing regulatory processes and introducing simpler insurance products.

He also said the Insurance Bill currently before Parliament could become an important step toward modernizing and developing Pakistan’s insurance sector.

The session was attended by representatives from insurance companies, the development sector, students and SECP officials.