Pakistan has made remarkable progress in digital finance over the past decade. Mobile wallets have become part of everyday life, instant payments are transforming commerce and millions of Pakistanis now access financial services through their mobile phones. Yet one critical pillar of financial inclusion remains largely absent from this digital revolution: insurance.
DIGITAL MICRO-INSURANCE
Pakistan has made remarkable progress in digital finance over the past decade. Mobile wallets have become part of everyday life, instant payments are transforming commerce and millions of Pakistanis now access financial services through their mobile phones. Yet one critical pillar of financial inclusion remains largely absent from this digital revolution: insurance.
For millions of Pakistanis, a medical emergency, the death of a family’s breadwinner, the loss of livestock, a failed crop or a devastating flood is not simply a personal tragedy. It can erase years of hard-earned progress and push an entire household into poverty. Financial inclusion without financial protection is incomplete.
According to the World Bank, more than 40 per cent of Pakistan’s population now lives below the national poverty line, with poverty disproportionately concentrated in rural areas. Nearly two-thirds of Pakistanis live in villages and small towns where livelihoods depend on agriculture, livestock, daily wages and micro-enterprises. These households are increasingly exposed to climate change, rising healthcare costs, economic uncertainty and natural disasters. However, the overwhelming majority remain uninsured. Closing this protection gap is an economic and social imperative.
Pakistan already possesses many of the ingredients needed to build an inclusive digital insurance ecosystem. With nearly 200 million mobile subscribers, more than 148 million mobile broadband users and rapidly expanding smartphone penetration, the digital infrastructure is already in place. Platforms such as JazzCash and Easypaisa have transformed the way Pakistanis save, transfer money and pay bills, while emerging digital insurance marketplaces such as FikrFree demonstrate how insurance can be seamlessly embedded into everyday financial services. Financial protection should become the next natural layer of Pakistan’s digital economy.
International experience shows what is possible. Bima pioneered mobile-delivered insurance through partnerships with telecom operators, while countries such as Kenya, Bangladesh and India have shown that embedded insurance can rapidly expand affordable financial protection through digital ecosystems.
Pakistan has already proved that digital innovation can transform financial inclusion. The next frontier is building a ‘Digital Protection Economy’ where every farmer, livestock owner, shopkeeper, daily wage earner and micro-entrepreneur can access affordable insurance
The opportunity is particularly compelling in agriculture. According to the Pakistan Economic Survey 2025–26, Pakistan has approximately 61.9 million cattle, 49.1 million buffaloes, 91.8 million goats and 33.5 million sheep, which adds up to a national herd exceeding 236 million major livestock animals. Livestock contributes nearly 63 per cent of agricultural value added and supports more than eight million rural households. Yet these productive assets remain overwhelmingly uninsured despite their importance to rural incomes, food security and economic resilience.
Encouragingly, Pakistan’s regulatory framework is evolving in the right direction. The Securities and Exchange Commission of Pakistan (SECP) deserves recognition for introducing digital onboarding, e-KYC, paperless insurance and, most importantly, digital insurance licences. These reforms are laying the foundation for technology-driven insurers capable of reaching millions of previously underserved citizens.
Equally important is collaboration. This was a recurring theme during the IAP–PSOA International Insurance Conference 2026, where regulators, insurers, fintech companies, development partners and international experts broadly agreed that expanding insurance coverage will require closer partnerships between insurers, telecom operators, banks, fintech platforms and governments. No single institution can bridge Pakistan’s protection gap alone.
The next phase should focus on execution. Affordable insurance should be embedded into digital payment platforms, agricultural and livestock protection expanded, parametric solutions encouraged for climate-related risks and public-private partnerships leveraged to reach low-income households at scale. Success will depend not only on innovation, but also on trust, affordability and simplicity for first-time insurance users.
Pakistan has already proved that digital innovation can transform financial inclusion. The next frontier is building a Digital Protection Economy where every farmer, livestock owner, shopkeeper, daily wage earner and micro-entrepreneur can access affordable insurance as easily as making a mobile payment.
If nearly half of Pakistan’s population remains economically vulnerable, expanding insurance becomes a national development imperative. By combining progressive regulation, digital innovation and effective public-private collaboration, Pakistan has the opportunity to build one of South Asia’s most inclusive digital micro-insurance markets and protect millions of families, strengthen rural livelihoods and make economic growth more resilient for generations to come.
The writer is chief operating officer of IGI General Insurance and senior vice chairman of the Insurance Association of Pakistan.
