Insurance in Pakistan has long been misunderstood—seen as unnecessary, complex, or even un-Islamic. Most people either don’t trust insurance companies or simply don’t understand how insurance works. This has kept the sector on the sidelines, with insurance penetration still under 1% of GDP.
But things are starting to change.
A Shift in Mindset
After COVID-19, many Pakistanis began thinking more seriously about their health, families, and financial security. Suddenly, terms like life insurance, health coverage, and accident protection didn’t sound so foreign anymore.
More importantly, younger, tech-savvy Pakistanis are now asking:
“Why isn’t insurance simpler, quicker, and digital?”
Enter: Digital Insurance
The traditional model of insurance—agents with long forms and even longer waiting times—is giving way to more agile, tech-based solutions.
Companies like EFU Life, TPL Insurance, and Adamjee are digitizing services with:
- WhatsApp-based policy updates
- Mobile apps for instant car claim tracking
- Online calculators and chat support
With over 190 million mobile users in Pakistan, these tools are helping insurers meet people where they already are—on their phones.
Microinsurance: Small Amounts, Big Impact
Not everyone can afford standard insurance premiums—and that’s where microinsurance comes in.
Daily wage earners, domestic workers, and delivery riders are now being offered bite-sized insurance policies at as little as Rs. 5–10 per day. These are often bundled with:
- Mobile wallets (like Easypaisa or JazzCash)
- Microfinance loans
- Telemedicine apps
This is helping bring financial security to people who’ve never had it before.
Bancassurance: A Work in Progress
Banks have become major distribution channels for insurance—but the approach needs improvement.
Many customers feel they’re misled or confused by complicated policy terms. To build trust:
- Bank staff need proper training
- Policies should be explained in simple Urdu
- Digital dashboards should clearly show what’s covered (and what’s not)
Transparency is everything.
Health Insurance Is Catching On
With rising hospital bills and healthcare inflation, health insurance is gaining momentum.
Government initiatives like the Sehat Card in Punjab and KP have created awareness, while startups like Sehat Kahani, Marham, and InstaCare are collaborating with insurers to offer:
- Online doctor consultations
- Mental health services
- Coverage with mobile access
Health coverage is no longer just a privilege—it’s becoming a necessity.
Meet the New Players: InsurTech Startups
A new wave of startups is pushing the industry forward. Platforms like:
- Smartchoice.pk (insurance comparison)
- Waada (fully digital insurance)
- Salaam Takaful (Shariah-compliant models)
are building user-friendly tools to make insurance faster, easier, and more transparent.
This is a welcome shift in an industry that’s been stuck in the past for too long.
What’s Holding Us Back?
Despite progress, there are still real challenges:
- Lack of awareness: Most people don’t know what kind of insurance they need—or that it even exists.
- Religious concerns: Many see insurance as non-Islamic, even though Takaful is gaining ground.
- Claim delays: Trust breaks down when people wait months to get reimbursed.
- Limited rural reach: Most insurance agents still focus only on urban centers.
What’s the Opportunity?
There’s enormous untapped potential—if done right.
Here’s how Pakistan’s insurance sector can evolve:
- Educate in Urdu: Use SMS, reels, and voice notes to explain policies in simple words.
- Focus on women: Most ads target men, but it’s women who make many financial decisions at home.
- Bundle creatively: Offer insurance with bikes, school fees, utility bills—or even mobile data.
- Grow Takaful models: Build trust by highlighting Shariah-compliant solutions.
Final Thoughts
Insurance in Pakistan is slowly moving from being a grudge purchase to becoming a trusted financial safety net. With digital innovation, microinsurance, and a shift in consumer mindset, the industry has a real chance to grow—and serve millions more.
But success won’t come from just selling policies.
It’ll come from building trust, simplifying the process, and putting people first.
Pakistan’s insurance sector isn’t just changing—it’s transforming.
