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ISLAMABAD, Jul 18 (APP):The Securities and Exchange Commission of Pakistan (SECP) has published a landmark report titled “Role of Insurance in Social Security: Landscape of Pakistan.”
The study explores the potential of insurance as a key instrument for social protection and financial resilience, particularly for vulnerable and underserved populations, said a press release issued by the SECP here on Friday.
Developed under SECP’s Five-Year Strategic Plan, “Journey to an Insured Pakistan”, the report highlights the limited coverage and weak enforcement of existing mandatory insurance laws, as well as the absence of national-level insurance schemes for informal sector workers.
Despite legal provisions requiring group life insurance for formal workers, only 9.5 million workers out of the total 72 million 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 centered on five key 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 standardized, accessible insurance products.
In his message, the SECP Chairman emphasized the Commission’s commitment to strengthening Pakistan’s insurance sector as a tool for sustainable development, financial protection, and social inclusion.
The Commissioner Insurance further called upon all stakeholders including lawmakers, insurers, social security institutions, and employers to collaborate in translating these recommendations into actionable reforms.