ISLAMABAD   -   To meet the objectives of the Insured Pakistan 5-year Strategic Plan, the Securi­ties and Exchange Commis­sion of Pakistan (SECP) has released a comprehensive report titled “Insured Paki­stan: Pools Dynamics.”

This report underscores the necessity for establish­ing insurance pools in Paki­stan by evaluating the cur­rent insurance landscape and existing official insur­ance schemes. It discusses international case studies and examples, evaluates do­mestic legal and regulatory frameworks, and proposes an action plan for creating insurance pools in Pakistan, emphasizing the collective responsibilities of involved stakeholders.

Pakistan is exposed to multiple risks such as di­saster risks, energy and power sector risks, agricul­ture risks, etc., and yet the country remains largely un­insured. In the event of an undesired event, major reli­ance is placed on budgetary allocations for loss and re­covery financing.

The insurance pools serve as risk pooling mechanisms for managing large and spe­cialized risks, the coverage of which is not feasible for an individual insurance compa­ny, both in terms of expertise and financial strength. They shall not only help in manag­ing these varied risks opti­mally and efficiently, but also assist the insurance sector in expanding the coverage and protection to the country and the population. The report includes an action matrix outlining the responsibilities of diverse stakeholders.

Commissioner Insurance, Aamir Khan, in his mes­sage, emphasized the need for establishing specialized risk pools in Pakistan, as the pooling of risk and resourc­es in a systematic manner shall enable the govern­ment, insurance industry and policyholders to collec­tively mitigate large risks. The report’s draft version was unveiled in December 2023 at the International InsureImpact Conference 2023 held in Karachi. It has been meticulously revised following stakeholder input.