Inclusive insurance and risk financing in Pakistan. Snapshot and way forward 2024

Inclusive insurance and risk financing in Pakistan. Snapshot and way forward 2024

September 03, 2024

This report presents the main findings of UNDP’s inclusive insurance and risk finance country diagnostic for Pakistan. It sets out key risks, the current inclusive insurance and disaster risk finance landscape, and recommendations to advance inclusive insurance, risk finance and development.

Pakistan’s chief risks include floods, drought, tropical cyclones and earthquakes. Inclusive insurance is primarily made up of microinsurance and micro-takaful products. Disaster risk financing comes from government budgets, donor assistance and insurance for public assets. A disaster risk financing strategy is under development.

Recommendations include enhancing insurance underwriting capabilities; establishing compulsory catastrophe insurance for public infrastructure; and tracking contingent liabilities and enhancing financial disaster risk assessment.