Secp Plans To Enhance Insurance Role In Disaster Resilience

In a significant development, the Securities and Exchange Commission of Pakistan (SECP) has unveiled a comprehensive plan aimed at enhancing the role of insurance in disaster resilience, particularly focusing on provincial participation in disaster schemes. The SECP's presentation highlighted the necessity for improved coordination among government institutions and insurers to bolster underwriting capacity and reduce claims management uncertainties. Notably, the SECP emphasized that while the insurance sector has shown gradual growth, its penetration remains low compared to regional benchmarks, with the non-life segment being particularly underdeveloped despite Pakistan's vulnerability to climate-related disasters. The SECP's recommendations include expanding national agriculture insurance programs through public-private partnerships, with a consortium of insurance companies proposed to facilitate this expansion. According to the SECP, "stronger institutional coordination and wider insurance coverage are essential for improving national resilience," indicating a proactive approach to managing disaster-related financial risks (Business Recorder, February 27, 2026).