Only 3 percent of vehicles in Pakistan are insured, according to TPL Insurance CEO Muhammad Aminuddin.
He shared the figures during a Securities and Exchange Commission of Pakistan (SECP) talk series. The session focused on insurance market development and digitalization.
Aminuddin said around 97 percent of vehicles in Pakistan remain without insurance. He highlighted the large gap in motor insurance coverage.
The figures show significant room for growth in the country’s insurance sector. Wider coverage could also improve financial protection for vehicle owners.
SECP Chairman Dr. Kabir Ahmed Sidhu also discussed the state of insurance digitalization. He said the sector remains at an early stage of digital development.
According to Sidhu, only 0.85 percent of insurance premiums are currently generated through digital channels. He stressed the need to expand digital insurance products.
Sidhu said digital services could make insurance easier for consumers to access. They could also improve transparency and strengthen customer confidence.
The SECP chairman highlighted progress in third-party motor insurance in Sindh. He said coverage increased by up to 2,000 percent during the past six months.
The regulator is also discussing similar expansion with the Punjab government. The move could help increase motor insurance coverage across more areas.
The SECP is developing a digital system to verify motor insurance. The system will also support enforcement of mandatory coverage requirements.
The regulator is working on additional reforms for insurance claims. These reforms aim to ensure claims are handled fairly and within reasonable timelines.
Sidhu also announced plans for an “Insured Pakistan” digital platform. The platform is expected to promote insurance services through digital channels.
He called for insurance products that are simpler and easier for consumers to understand. User-friendly products could encourage more people to obtain coverage.
Aminuddin said SECP initiatives could significantly increase motor insurance coverage. He suggested that all vehicles could potentially be covered by 2030.
The insurance executive also discussed the growing role of artificial intelligence. He said AI is rapidly changing business processes across different industries.
Insurance companies, he added, will need to adopt modern technologies to remain competitive. AI can help insurers improve products and assess risks more effectively.
It could also support faster claims processing and improve operational efficiency. These technologies may help insurers respond more effectively to customer needs.
The discussion comes as Pakistan seeks greater digital adoption across its financial sectors. Insurance remains one area with considerable potential for digital growth.
Increasing insurance coverage could provide greater financial protection for vehicle owners. It could also support a more transparent and accessible insurance market.
The session was attended by senior SECP officials and representatives from the insurance industry. Participants included State Life CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed.
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The latest figures highlight the scale of Pakistan’s motor insurance gap. Digital reforms and stronger enforcement could help address the issue in coming years.
