CCP Calls For Greater Competition, Digitalisation To Expand Pakistan’s Insurance Sector

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 30th Sep, 2026) The Competition Commission of Pakistan (CCP) has called for stronger competition, greater digitalisation, improved claims settlement and wider market access to unlock the potential of the country’s insurance sector, where penetration remains at just 0.7 per cent of gross domestic product (GDP).

The call was made during a meeting of the Competition Consultative Group (CCG), held on “Strengthening Competition in Pakistan’s Insurance Sector: Challenges, Opportunities and the Way Forward”. According to a CCP statement issued on Wednesday, the meeting brought together industry representatives, regulators, academics and consumer protection experts to examine challenges facing the sector and identify areas for future growth.

In his opening remarks, CCP Chairman Farid Ahmad Tarar said insurance played an important role in managing risks, mobilising long-term savings and supporting economic activity.

A CCP presentation showed that Pakistan currently has 44 insurers, including 36 conventional insurers, seven Takaful operators and one reinsurer, with around 10.4 million policies. The presentation identified market concentration, barriers to entry, concentration in bancassurance, limited public awareness, information asymmetry, claims disputes and delays, as well as inadequate innovation and digitalisation, among the major competition challenges.

Presenting the regulator’s perspective, Waseem Khan, Director and Head of the Life Policy and Approval Department in the Insurance Division, highlighted the importance of digitalisation, effective implementation of mandatory insurance, expansion of agricultural insurance and adoption of a risk-based solvency framework. The Insurance Bill, 2026, was also discussed during the meeting.

The first panel, focusing on the regulatory framework, market structure and competitiveness, brought together senior representatives from leading insurance companies, including Kamran Arshad Inam of EFU General Insurance, Azfar Arshad Inam of Jubilee General Insurance, Faisal Khan of IGI General Insurance, Sharjeel Shahid of UBL Insurers and Muhammad Ashar of State Life Insurance Corporation of Pakistan. The session was moderated by Ali Shehzad, Executive Director and COO of Pakistan General Insurance Company.

The panel identified agriculture, small and medium-sized enterprises, retail and microfinance as areas with significant untapped potential. Participants called for improved insurance products, stronger reinsurance capacity, better data infrastructure, greater digitalisation and measures to strengthen consumer trust.

They also stressed the importance of reliable and comprehensive data for improving risk assessment and pricing, detecting fraud and making claims management more efficient.

The second panel examined consumer protection and the role of insurance in economic development. It included Dr Abid Qaiyum Suleri of the Sustainable Development Policy Institute, Ghulam Ghous of the Federal Insurance Ombudsman, Khurram Irshad Khan of the National Insurance Company Limited, Dr Bakht Jamal Sheikh of Adamjee Life Assurance and Nadeem Iqbal of The Network for Consumer Protection.

Participants in the session emphasised the need for easier premium payment mechanisms, faster claims settlement, responsible selling practices, transparent disclosures and effective complaint-handling systems. They said digitalisation should improve the entire consumer experience, from purchasing an insurance policy to the final settlement of claims.

The discussions identified agriculture, health, Takaful, microinsurance, SMEs and rural markets as major areas for expansion, while also highlighting the need for stronger enforcement of mandatory insurance requirements, greater financial literacy, improved data infrastructure and continued product innovation.

Concluding the meeting, CCP Chairman Farid Ahmad Tarar said the deliberations would help identify areas where competition advocacy, regulatory coordination and appropriate policy measures could contribute to strengthening the insurance sector. He said such efforts could help create a more competitive and efficient market while improving outcomes for consumers.