Pakistan Approves First Fully Digital License for Non-Life Insurance Company

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In a landmark move for the country’s financial services sector, the Securities and Exchange Commission of Pakistan (SECP) has issued the first fully digital license to a non-life insurance provider. Karachi-based Digi Insurance Limited has become the first company in Pakistan authorised to operate entirely without a physical branch network, marking a significant shift towards digitisation in the insurance industry.

The license allows Digi Insurance to sell a full suite of general insurance products ranging from motor to health and travel coverage exclusively through a digital platform. This regulatory development is aimed at modernising access to insurance services, promoting transparency, and expanding financial inclusion across the country. Unlike traditional insurers, Digi will rely solely on online tools and platforms to interact with customers, removing the need for face-to-face transactions or branch-level overheads. It reflects a global trend where insurers are turning to technology to streamline operations and reduce costs.

The SECP, in its statement, highlighted that this digital-first model is expected to lower operational expenses and improve customer convenience, especially for underserved populations in remote areas. Analysts have described this move as a crucial step in enhancing competition and innovation within Pakistan’s rigid insurance landscape. Digi’s entrance could force traditional players to rethink their outdated models and adopt more agile, customer-friendly strategies. Moreover, the digital license comes with strict compliance and cyber-security requirements to ensure customer data is protected and services remain reliable.

This forward-looking initiative is not just about convenience; it is about transforming a sector long considered inefficient and inaccessible. With Pakistan’s insurance penetration still among the lowest in the region, the arrival of a digital-only player signals a much-needed evolution. While the political leadership remains largely focused on outdated populist policies, it is Pakistan’s regulatory and private sector institutions that are quietly pushing the country into the 21st century. If implemented effectively, Digi Insurance could serve as a blueprint for future innovation, driving progress not just in insurance but in broader financial services.