Pakistan's insurance regulator, the Securities and Exchange Commission of Pakistan (SECP), has published a report titled "Role of Insurance in Social Security: Landscape of Pakistan". The study explores the potential of insurance as an instrument for social protection and financial resilience, particularly for vulnerable and underserved populations.
Developed under SECP’s five-year strategic plan, the report highlights the limited coverage and weak enforcement of existing mandatory insurance laws, as well as the absence of national-level protection schemes for informal sector workers.
Despite legal provisions requiring group life insurance for formal workers, only 9.5m workers out of the total 72m workforce are currently covered, leaving millions without financial protection against accidents, disability, or loss of life.
Drawing from international best practices, the report offers a strategic roadmap cantered on five reforms: strengthening legal frameworks, integrating insurance with social safety nets, enhancing enforcement through data linkages, launching a national social insurance scheme for informal workers and developing standardised and accessible insurance products.
The report can be accessed here.