The government has decided to introduce major reforms in the insurance sector, and in this regard, the Insurance Bill 2026 has been presented in the National Assembly.
According to sources, the new bill proposes opening the insurance sector completely to foreign investment in order to encourage global investors to invest in Pakistan’s insurance industry. The new law will replace the 25-year-old Insurance Ordinance.
Chairman of the Securities and Exchange Commission of Pakistan, Dr. Kabir Sidhu, said that a strong insurance sector is extremely important for sustainable economic growth. He added that the new bill would provide better financial protection to citizens, businesses, industry, and the agriculture sector.
Dr. Kabir Sidhu further stated that under the new law, low-cost and faster insurance services would be provided through digital platforms.
Authorities believe the suggested reforms will also help improve public trust in the insurance industry by strengthening regulatory oversight, encouraging innovation, and expanding access to insurance products for underserved communities across the country.
The insurance sector is vital to economic stability by sheltering individuals and businesses to afford financial risks arising from accidents, natural hazards, health emergencies, and commercial losses. Experts say that stronger insurance coverage can support investment, protect livelihoods, and reduce the financial burden on both citizens and the government during times of crisis.
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