Karachi – The Securities and Exchange Commission of Pakistan (SECP) organized a roundtable discussion titled “The Future of Takaful in Pakistan.” The event was part of the SECP’s ‘Insured Pakistan’ five-year strategic plan. The half-day session brought together Shariah advisors, international insurance brokers (AON and Guy Carpenter), and insurance industry representatives to promote the development of the Takaful sector.
Led by the SECP’s Insurance Division under the guidance of Commissioner Mr. Mujtaba Ahmed Lodhi, the initiative aimed to identify policy and regulatory measures to enhance the Takaful industry’s market share and promote Shariah-compliant financial inclusion, thereby contributing to economic growth and ongoing regulatory reforms.
In his welcome address, Mr. Mujtaba Ahmed Lodhi, Commissioner of Insurance, appreciated the participants’ active engagement and emphasized the importance of collective ownership in driving the transition toward Takaful. He reaffirmed the SECP’s commitment to providing a facilitative regulatory environment and extended full support to the industry for implementing the future roadmap.
Mr. Mufti Ehsan Waqar, a member of the SECP’s Shariah Advisory Board, highlighted the importance of transitioning to Shariah-compliant insurance in light of recent constitutional reforms. He outlined key industry challenges and urged both the SECP and market participants to collaborate on developing clear guidelines to facilitate this transition.
The SECP team outlined the Takaful sector’s key challenges and strategic priorities, while also highlighting its broader efforts to promote Islamic finance across the financial industry. Representatives of the Insurance Association of Pakistan identified potential issues, including the limited availability of re-Takaful capacity, the conversion of conventional insurance products, and the support required from the regulator and government to address them.
Representatives from international insurance brokers shared valuable insights on global reinsurance and re-Takaful trends, outlining challenges and opportunities for Pakistan’s Takaful sector in aligning with international best practices.
The roundtable concluded with an open discussion where participants shared their perspectives on the way forward. The discussion focused on addressing re-Takaful capacity challenges, fostering innovation, strengthening industry capabilities, and promoting greater market collaboration. Industry representatives commended the SECP’s proactive approach and reaffirmed their commitment to collectively advancing the Takaful industry, contributing to the vision of a fully insured Pakistan.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
