Insurance Schemes: Sindh Partners with Private Sector to Expand Financial Protection

Insurance Schemes will become part of Sindh’s expanded social protection strategy as the provincial government plans multiple programmes with private sector partners to improve financial security for citizens.

Sindh Chief Minister Syed Murad Ali Shah announced the initiative while addressing the 1st IAP & PSOA International Insurance Conference 2026 in Karachi.

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He said the provincial government is supporting the insurance sector through policy measures, tax reductions, and financial allocations for insurance premiums.

Road Accident Coverage Introduced

The chief minister said Sindh became the first province in Pakistan to introduce mandatory third-party motor vehicle insurance.

Under the scheme, families of road accident victims will receive Rs700,000 in case of death. The government will provide Rs500,000 compensation for permanent disability.

Murad Ali Shah also announced plans for an accidental death insurance programme. The scheme will provide Rs100,000 coverage to every resident aged 18 years and above.

He added that Sindh is preparing additional insurance initiatives for health and agriculture sectors to improve public welfare.

Digital Insurance and Agriculture Protection

Prime Minister’s Coordinator on Commerce Rana Ahsan Afzal Khan said the government is upgrading agricultural financing programmes with new features to protect the agriculture sector.

He said Pakistan can expand insurance access through digital solutions. Using the country’s large mobile phone user base can help provide affordable micro-insurance products.

Rana Ahsan also called for a joint committee to identify legal and regulatory challenges affecting the insurance industry.

Insurance Sector Holds Growth Potential

Adviser to the Ministry of Finance and Revenue Adnan Pasha said increasing insurance coverage to 2 per cent of GDP could generate billions of rupees in economic activity.

He said government programmes in agriculture, housing, small and medium enterprises (SMEs), and electric vehicles can support economic growth and strengthen related industries.

He identified limited public awareness and weak distribution networks as major reasons behind Pakistan’s low insurance coverage.

Industry Calls for Reforms

Insurance Association of Pakistan (IAP) Chairman Shoaib Javed Hussain said Pakistan’s insurance sector has significant growth potential despite low penetration.

He said Pakistan’s insurance-to-GDP ratio stands at 0.9 per cent, compared with around 4 per cent in regional economies and nearly 6 per cent in developed countries.

He added that insurance density in Pakistan remains at $14 per person, while the global average is around $60 per person.

Shoaib Javed Hussain said insurers should view low coverage as an opportunity to expand services, especially among Pakistan’s young population.

He urged industry stakeholders to promote innovation, strengthen partnerships, and work with regulators to improve the sector.

He also called for faster reforms in crop and health insurance to provide better financial protection to businesses and households.

More than 500 insurance executives, actuaries, regulators, policymakers, and international experts attended the conference in Karachi on July 21, 2026.

The event was organised jointly by the Insurance Association of Pakistan (IAP) and the Pakistan Society of Actuaries (PSOA) under the theme “Reimagining Pakistan’s Resilience: Building a Sustainable Future through Insurance.”