The insurance landscape in Pakistan is undergoing a major transformation. With the Securities and Exchange Commission of Pakistan (SECP) releasing its new Digital Insurance Regulations, the pathway is now clear for insurers to fully embrace digitization, modernize their offerings, and drive financial inclusion.
These guidelines not only provide a framework for digital insurance in Pakistan but also open new opportunities for innovation and customer engagement across the sector.
So, What Is Digital Insurance?
Digital insurance refers to insurance products that are designed, distributed, and serviced entirely through digital platforms. From purchasing a policy to paying premiums and submitting claims, customers can manage their entire insurance journey online, without visiting a branch or handling paperwork.
This digital-first approach streamlines operations, enhances customer experience, and aligns with the evolving expectations of today’s tech-savvy consumers.
What’s New from SECP?
The SECP’s Digital Insurance Regulations outline clear directives for how insurers and takaful operators can offer tech-enabled and fully digital products. These changes are designed to build trust, improve accessibility, and drive growth in the insurance sector.
- Digital-Only Insurers Are Now Regulated
Insurers can now operate as digital-only insurance companies, offering their products exclusively through online channels. This encourages new players to enter the market with cost-efficient, scalable business models. - Mandatory Tech-Based Product Distribution
All life insurers are now required to offer at least one savings product via their digital platform and through an independent third-party channel. This mandate pushes the adoption of omnichannel insurance distribution and broadens customer access. - Simplified Customer Onboarding
Insurers must now implement user-friendly onboarding journeys that are streamlined, transparent, and equipped with real-time customer support features. This enhances the customer experience and minimizes drop-offs. - Stronger Consumer Protections
To ensure fairness and safety, the regulations require cost controls, suitability assessments, and low-risk investment mandates for digital insurance products, ensuring that customers’ interests are protected.
The Role of Tidal Waves in Driving Digital Transformation
As one of Pakistan’s leading insurance technology providers, Tidal Waves is playing a pivotal role in helping insurers transition into the digital future in line with SECP’s vision.
With over 30 years of experience in the insurance and takaful industry, Tidal Waves offers a robust, scalable, and fully integrated platform that supports the entire digital insurance lifecycle—from product creation and compliance to policy servicing and claims management.
Here’s how Tidal Waves enables insurers and takaful operators to succeed in this new era:
- Rapid Deployment of Digital Products
- Omnichannel Distribution Capabilities
- Automation of Core Processes (underwriting, claims, customer service)
- Built-In Regulatory Compliance Tools
- Seamless Integration with Partner Ecosystems
Whether you’re a traditional insurer adapting to digital trends or a new market entrant, Tidal Waves delivers the infrastructure needed to thrive in a digital-first insurance environment.
Impact on the Industry
For Insurers:
The SECP guidelines bring regulatory clarity and a push for innovation.
Technology partners like Tidal Waves provide the tools to digitize insurance operations, reduce costs, and expand customer reach.
For Agents:
Agents are now equipped with mobile CRMS, quote engines, and digital tools to serve customers better and manage client relationships.
This digital empowerment leads to improved efficiency and service quality.
For Customers:
Customers benefit from greater transparency, faster processes, and 24/7 access to policy information.
A digital insurance experience means convenience, control, and confidence in managing insurance needs.
What Needs Work?
Despite this progress, a few areas still require attention:
Digital premium penetration remains below 1% of total premiums, indicating room for growth.
Only a limited number of insurers offer end-to-end digital services.
The industry needs centralized infrastructure, such as a national insurance data exchange, to fully optimize digital solutions.
The SECP’s new regulations mark a significant milestone for the insurance industry in Pakistan. As insurers rise to meet these standards, technology enablers like Tidal Waves are at the forefront, providing the innovation and reliability needed to succeed.
The future of insurance is digital, and Tidal Waves is at the forefront of this transformation with innovation and expertise.
