In a virtual address at an event organized by the Securities and Exchange Commission of Pakistan (SECP) on Wednesday, Finance Minister Dr. Shamshad Akhtar stressed the need for broad-based growth in the country's insurance industry. Akhtar highlighted the crucial role of insurance in mitigating disaster risks, particularly relevant in the wake of COP 28 discussions in Dubai. He urged the SECP to develop regulations for introducing financial products specific to disaster management. Underscoring the economic potential of the insurance sector, the Minister emphasized its contribution to employment generation, capital market growth, and overall economic development. He called for active participation of capital markets and banks in supporting the industry's expansion.

Akhtar noted the global importance of insurance, with asset values exceeding $1100 billion. He expressed concern about Pakistan's low insurance penetration rate of less than 1%, significantly below regional peers like India (3.76%) and Sri Lanka (1.25%). The Minister urged the insurance and private sectors to embrace information technology, particularly artificial intelligence, to drive further growth and efficiency. SECP Chairman Aqib Saeed announced the launch of a five-year strategic plan for the insurance industry, aiming to build a sustainable and robust sector by 2028.

Credit: Independent News Pakistan (INP)