ADB officials discuss insurance reforms with Pakistan’s companies regulator

A delegation from the Asian Development Bank (ADB) has met with Pakistan’s companies regulator to discuss reforms in the insurance sector and future areas of cooperation.

A statement issued after the meeting said the ADB delegation was led by Country Director Emma Fan and included Salman Mian and Dr Raja M. Ali Saleem. They met with the Securities and Exchange Commission of Pakistan (SECP) Chairman, Dr Kabir Ahmed Sidhu, and the regulator’s insurance team.

SECP officials briefed the delegation on reforms, including a new insurance law currently under consideration at the Ministry of Law. The proposed law covers the regulatory reforms for the opening of market, ease of doing business, digitalization, and product innovation and enhances supervisory powers for policyholders' protection.

They also briefed on other key initiatives, including establishing a consortium of insurers to underwrite agricultural insurance, expanding crop insurance coverage for both loanee and non-loanee farmers through public-private partnerships, and enhancing the scope of mandatory insurance.

The SECP highlighted proposals for mandatory catastrophe insurance for critical public assets, the use of modern technologies such as satellite-based assessments and digital claims systems, and improved data sharing to enhance transparency and efficiency.

The insurance penetration in Pakistan remains low, underscoring the need for diversified products and risk-financing mechanisms. ADB and other development partners, including the IMF, are supporting initiatives such as disaster resilience financing frameworks.

Both sides reaffirmed their commitment to continued collaboration to strengthen Pakistan’s insurance sector and enhance financial protection against natural disasters.