Only 3 percent of vehicles in Pakistan carry insurance, according to TPL Insurance CEO Muhammad Aminuddin. He shared this figure on Tuesday during a Securities and Exchange Commission of Pakistan talk series on insurance market development and digitalization. Aminuddin confirmed that vehicles without insurance make up a staggering 97 percent of the country’s total fleet.
SECP Chairman Dr. Kabir Ahmed Sidhu said the insurance sector remains at an early stage of digitalization. Only 0.85 percent of insurance premiums currently flow through digital channels. Therefore, he argued, expanding digital insurance products could make coverage more accessible while improving transparency and consumer confidence. Sidhu also noted that third-party motor insurance in Sindh had increased by up to 2,000 percent over the past six months. Meanwhile, the SECP is discussing similar expansion plans with the Punjab government.
The regulator is developing a digital system to verify motor insurance and enforce coverage requirements. Additionally, it is working on reforms to ensure insurance claims get settled fairly and on time. Sidhu said the SECP plans to launch an “Insured Pakistan” digital platform to promote insurance services more broadly. He also called for simpler, more user-friendly insurance products across the industry.
Aminuddin said the SECP’s initiatives on third-party motor insurance could help extend coverage to all vehicles by 2030. He also pointed to artificial intelligence as a rapidly changing force within business processes. Insurance companies, he said, will need to adopt modern technologies to stay competitive. AI could help insurers improve products, assess risks more accurately and speed up claims processing significantly.
Senior SECP officials and industry representatives attended the session, including State Life CEO Shoaib Javed Hussain and EFU Life CEO Muhammad Ali Ahmed. Finally, the discussion underscored a broader push across Pakistan’s financial sector to close the gap left by vehicles without insurance through technology-driven reform.
