SECP told to widen inclusive insurance coverage in Pakistan

Pakistan has significant potential to expand inclusive insurance coverage, which could strengthen social protection and support progress towards the Sustainable Development Goals, Michael J McCord, managing director of the MicroInsurance Centre at Milliman, told a session of the Securities and Exchange Commission of Pakistan's Talk Series on "Inclusive Insurance: Global Insights."

McCord said insurance protection could be extended to underserved households, farmers, workers and small businesses in Pakistan. Cover of that kind, he argued, would help protect livelihoods, strengthen financial resilience and provide a wider social safety net.

He said insurance products must deliver meaningful value to consumers and should be easy to understand, affordable and responsive to customers' actual needs. Insurers should build public trust through timely and reliable claims payments, he added, noting that a customer's experience of filing a claim shapes perceptions of the industry's reputation. He also pointed to digital technology and alternative distribution channels as ways to reduce costs and extend coverage.

Earlier, Commissioner Insurance Imtiaz Haider told participants that microinsurance could help low-income families, farmers and small businesses recover from illness, accidents or natural disasters without depleting their savings or selling productive assets. He reaffirmed the SECP's commitment to an inclusive and trusted insurance sector, saying affordable risk protection was essential for wider financial inclusion.