Only 3 percent of vehicles in Pakistan are insured, TPL Insurance CEO Muhammad Aminuddin said on Tuesday.
Speaking during a Securities and Exchange Commission of Pakistan (SECP) talk series on the development and digitalization of the insurance market, Aminuddin said 97 percent of vehicles remain without insurance.
SECP Chairman Dr. Kabir Ahmed Sidhu said the insurance sector was still at an early stage of digitalization, with only 0.85 percent of insurance premiums being generated through digital channels.
He said expanding digital insurance products could make insurance more accessible while improving transparency and consumer confidence.
Sidhu said third-party motor insurance in Sindh had increased by up to 2,000 percent over the past six months. He added that the SECP was also discussing the expansion of third-party motor insurance with the Punjab government.
The regulator is developing a digital system to verify motor insurance and enforce coverage requirements. It is also working on reforms to ensure 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 and more user-friendly insurance products.
Aminuddin said the SECP’s initiatives on third-party motor insurance could help extend coverage to all vehicles by 2030.
He also said artificial intelligence was rapidly changing business processes and that insurance companies would need to adopt modern technologies to remain competitive. AI could help insurers improve products, assess risks and speed up claims processing.
The session was attended by senior SECP officials and industry representatives, including State Life CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed.
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