Pakistan's Competition Watchdog Calls for Reforms to Grow Underdeveloped Insurance Sector

The Competition Commission of Pakistan (CCP) has called for greater competition, digitalisation, improved claims settlement and wider market access to expand the country's insurance sector, according to a report from the Associated Press of Pakistan.

The commission noted that insurance penetration in Pakistan currently stands at just 0.7% of gross domestic product, a figure it characterized as reflecting significant untapped potential in the sector relative to other emerging economies.

According to the report, the CCP's recommendations center on making it easier for consumers to access insurance products and file claims, alongside encouraging insurers to modernize their operations through digital tools rather than relying solely on traditional distribution channels.

The report does not specify a timeline for implementing these recommendations or indicate whether regulatory changes are already being drafted in response to the commission's call.

Low insurance penetration is a common feature of developing economies, often attributed to limited consumer awareness, low disposable incomes and underdeveloped distribution networks, though the report does not attribute Pakistan's low figure to any specific cause.