A new report from the Securities and Exchange Commission of Pakistan (SECP) revealed a significant gap in insurance coverage for Pakistani workers, leaving a vast majority unprotected against unforeseen events.
The study, ‘Role of Insurance in Social Security: Landscape of Pakistan,’ finds that only 9.5 million out of 72 million workers benefit from group life insurance, despite existing legal mandates for formal sector employees. This leaves millions vulnerable in cases of accidents, disability, or death.
The report, developed as part of the SECP”s “Journey to an Insured Pakistan” initiative, identifies weak enforcement of current insurance regulations and the lack of comprehensive programs for informal sector laborers as major challenges. It proposes a five-point plan to address these issues, including strengthening legal structures, linking insurance with social safety nets, improving enforcement through data integration, creating a national social insurance program for informal sector workers, and designing accessible, standardized insurance offerings.
The SECP Chairman underscored the commission”s dedication to leveraging the insurance industry for sustainable growth, financial security, and social integration. The Insurance Commissioner urged collaboration among legislators, insurance providers, social security organizations, and businesses to implement the recommended reforms.