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

Sindh Chief Minister Syed Murad Ali Shah announced the plans while addressing the 1st IAP & PSOA International Insurance Conference 2026 in Karachi. He said the government is working with the insurance industry to expand coverage and strengthen social safety nets.

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He said Sindh supports insurance sector growth through policy reforms, reduced taxes, and dedicated funds for insurance premiums.

Road Accident Insurance Initiative

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

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

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

He added that the provincial government is preparing more insurance programmes for health and agriculture sectors.

Government Pushes Insurance Growth

Prime Minister’s Coordinator on Commerce Rana Ahsan Afzal Khan said the government is upgrading agricultural financing programmes. The new features will provide better protection to farmers and strengthen the agriculture sector.

He said Pakistan can expand insurance access by using its large mobile phone user base. Micro digital insurance solutions can make insurance products more affordable and accessible.

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

Insurance Sector Sees Growth Potential

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

He said government programmes in agriculture, housing, small and medium enterprises (SMEs), and electric vehicles can support economic growth. These initiatives can also strengthen related sectors, including insurance.

He highlighted limited public awareness and weak distribution networks as major reasons behind Pakistan’s low insurance coverage. He called for stronger cooperation between industry stakeholders and the government.

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 levels.

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 stands near $60 per person.

Shoaib Javed Hussain said the low coverage rate represents an opportunity for insurers to expand services, especially among Pakistan’s young population. He urged companies to focus on innovation, collaboration, and stronger partnerships with regulators.

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

More than 500 insurance executives, actuaries, regulators, policymakers, and international experts attended the Karachi conference on July 21. The event was jointly organised by the Insurance Association of Pakistan and the Pakistan Society of Actuaries under the theme “Reimagining Pakistan’s Resilience: Building a Sustainable Future through Insurance.”