The federal government today presented the Insurance Bill 2026 in the National Assembly, signaling a significant change in Pakistan’s insurance landscape. This proposed legislation, prepared by the Securities and Exchange Commission of Pakistan (SECP), attempts to revive the sector by inviting foreign investment, increasing competition, and providing easy access to insurance services to the public through digital platforms.
The new bill will replace the old Insurance Ordinance 2000, bringing comprehensive reforms, designed to expedite claim processing, resolve disputes promptly, and strengthen consumer protection mechanisms.
Pakistan’s insurance industry has long been affected by outdated regulations, resulting in barriers to public access and investment. Currently, less than one percent of the population avails insurance services, and the proposed law intends to eliminate these barriers to promote a more competitive market.
Key features of the Insurance Bill 2026 include clauses for foreign and reinsurance companies to establish branches in Pakistan, encouraging private sector involvement in the insurance of government-owned properties, and providing equal opportunities for private reinsurance entities.
The legislation also emphasizes digital transformation, advocating for technology-driven insurance services, digital onboarding, and an efficient regulatory system to make insurance more accessible and effective for consumers.
Furthermore, a permanent licensing system for insurance companies is proposed that will eliminate the need for frequent renewals and simplify regulatory filings. The bill enforces strict timelines for policyholder claims settlement and introduces measures to counter misleading sales practices while establishing a transparent complaint resolution process.
SECP also aims to strengthen the regulatory framework through a risk-based capital system and solvency management reforms for insurance companies.
SECP Chairman Dr. Kabir Ahmed Siddiqui highlighted the critical role of a robust insurance sector in the sustainable development of Pakistan’s economy. He emphasized that the Insurance Bill 2026 will enhance access to insurance across all segments of society, allowing citizens to benefit from affordable and innovative insurance solutions through digital platforms.
In collaboration with federal ministries, parliamentary committees, and other stakeholders, SECP is actively working to build consensus for this vital legislation, which underpins Pakistan’s economic stability and growth.