SECP has marked a major advancement in Pakistan’s financial services sector by issuing the country’s first-ever digital-only non-life insurance license to Digi Insurance Limited. This milestone represents a significant shift in the insurance industry as it embraces a tech-driven approach to policy delivery, operations, and customer engagement. Digi Insurance now holds the distinction of being the first insurer in the country to operate entirely through digital channels, with no physical branches.
The digital-only model introduced by Digi Insurance allows every aspect of the insurance process—from issuing policies to managing claims—to be conducted online. This development is expected to streamline services, reduce overhead costs, and offer broader accessibility, particularly in regions that have historically lacked physical access to insurance services. With its entirely digital infrastructure, Digi Insurance aims to deliver services efficiently while maintaining high standards of transparency and customer satisfaction.
The approval of this license is a reflection of SECP’s ongoing efforts to encourage innovation and promote the growth of insurtech in Pakistan. By enabling companies like Digi Insurance to operate in the digital domain, SECP is supporting initiatives that can help close protection gaps across underinsured populations. This move also encourages competitiveness within the insurance market, driving other industry players to invest in modernization and improve service quality.
The introduction of a digital-only insurance provider has the potential to reshape customer expectations and standards across the sector. The elimination of physical branches results in significant cost savings, which can be redirected toward customer benefits such as lower premiums, more customized offerings, and faster claims resolution. The use of advanced technology ensures that processes are automated and optimized, which in turn contributes to a smoother experience for policyholders.
This initiative is closely aligned with SECP’s broader strategy to build a more inclusive and innovative financial system. By embracing digital transformation in the insurance space, SECP seeks to create a regulatory environment that facilitates access, transparency, and resilience. The launch of Digi Insurance as a fully digital entity supports this agenda by introducing scalable, efficient solutions that can adapt to the needs of Pakistan’s diverse population, especially those in underserved and remote areas.
Digi Insurance’s entry into the market comes at a time when digital financial services are rapidly evolving in Pakistan, supported by increasing internet penetration and smartphone usage. SECP’s decision to issue this license highlights its role as a progressive regulator committed to enabling sustainable fintech and insurtech ecosystems. With this development, the insurance landscape in Pakistan is expected to become more competitive, accessible, and technologically advanced in the coming years.
