Inclusive Insurance in Pakistan

Fertile Ground for Developing Insurance for Emerging Consumers

With the fifth largest population in the world and 181m people categorised as “emerging consumers”, Pakistan represents a significant opportunity for the inclusive insurance sector. The country is characterised by low financial inclusion, major gender gaps and specific insurance sector challenges. These need to be addressed through public and private sector actions, including public-private partnerships, to provide adequate insurance coverage to vulnerable populations.

The majority of the working population in Pakistan are informally employed and face challenges related to social protection, poverty and gender discrimination.

• Pakistan is one of the most vulnerable countries to climate change effects. Many natural disasters, such as floods, droughts and cyclones, have occurred in recent years, affecting the country’s economy.
• The government launched national health insurance and social protection initiatives to improve access of the poor population to good quality medical services and reduce poverty.
• Health microinsurance was by far the largest product line in terms of number of people covered by microinsurance in Pakistan and Asia in 2020.
• Low claims ratios of microinsurance products reported in the Landscape Study highlight the necessity to better understand the needs of emerging populations in order to develop customer-centric products.