The Federal Government has introduced the Insurance Bill 2026 in the National Assembly of Pakistan to modernize the country’s insurance sector and improve access to insurance services through digital platforms.
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The proposed legislation, prepared by the Securities and Exchange Commission of Pakistan (SECP), aims to replace the 25-year-old Insurance Ordinance 2000.
Officials say the bill will simplify insurance services, speed up claim settlements, and strengthen consumer protection mechanisms.
New Law Aims to Promote Investment and Competition
According to the proposed reforms, the law will encourage investment, increase competition, and support the development of affordable and technology-driven insurance products.
Pakistan’s insurance sector has faced challenges for years because of low market penetration, outdated regulations, and limited innovation.
The bill also seeks to improve ease of doing business and support the growth of digital insurance services.
Major Reforms Included in Insurance Bill 2026
The proposed law introduces several major reforms for the insurance industry.
Market Liberalization
The bill allows foreign insurers and reinsurers to enter Pakistan’s market through branch structures.
Private Sector Participation
It permits greater private sector participation in public property insurance and grants private reinsurers priority rights for mandatory reinsurance.
Digital Transformation
The legislation recognizes insurtech products and introduces technology-driven distribution models and flexible intermediary structures.
Ease of Doing Business
The bill replaces periodic licensing renewals with perpetual licensing and simplifies regulatory filing procedures.
Consumer Protection
The reforms include stricter timelines for claim settlements, safeguards against mis-selling, and transparent dispute resolution systems.
Financial Stability
The bill introduces a Risk-Based Capital (RBC) framework along with early corrective measures for solvency management.
In addition, the law expands supervisory, governance, and enforcement powers of the SECP.
SECP Chairman Highlights Importance of Insurance Sector
Dr. Kabir Ahmed Sidhu said the insurance sector plays an important role in protecting households, businesses, and the national economy from financial risks.
He added that the Insurance Bill 2026 represents an important step toward increasing insurance penetration in Pakistan.
According to him, digital platforms and affordable insurance products can help extend insurance coverage to wider segments of society.
Meanwhile, the SECP stated that it continues to coordinate with federal ministries, parliamentary committees, and industry stakeholders to ensure smooth implementation of the proposed reforms.
