97% Cars in Pakistan Have No Insurance

Only 3 percent of vehicles in Pakistan are insured, according to TPL Insurance CEO Muhammad Aminuddin. During a Securities and Exchange Commission of Pakistan (SECP) discussion on the growth and digitalization of the insurance market, Aminuddin revealed that 97 percent of cars remain uninsured. SECP Chairman Dr. Kabir Ahmed Sidhu noted that the insurance sector is still in the early stages of digitalization, with only 0.85 percent of insurance premiums generated digitally.

Sidhu suggested that expanding digital insurance products can make insurance more accessible, improve transparency, and boost consumer confidence. He also mentioned that third-party motor insurance in Sindh has surged by as much as 2,000 percent in the past six months. Sidhu indicated that the SECP is exploring ways to expand third-party motor insurance in collaboration with the Punjab government.

The regulator is crafting a digital system to validate motor insurance and enforce coverage requirements, as well as reforms to ensure insurance claims are handled fairly and promptly. Sidhu unveiled plans for an "Insured Pakistan" digital platform to promote insurance services and called for more straightforward, user-friendly insurance products.

Aminuddin stated that the SECP's efforts on third-party motor insurance could potentially extend coverage to all vehicles by 2030. He also highlighted how artificial intelligence is rapidly transforming business processes, and insurance companies must embrace modern technologies to stay competitive. AI can assist insurers in enhancing products, evaluating risks, and accelerating claims processing.

The event brought together senior SECP officials and industry representatives, including State Life CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed.