Pakistan issues first digital-only licence for general insurance company

In a landmark move, the Securities and Exchange Commission of Pakistan (SECP) has granted the first ever digital-only operating licence to a local non-life insurance company, Digi Insurance Limited, in Karachi.

The move allows the company to operate on a fully digital end-to-end basis. Given the nature of its work, Digi Insurance can greatly benefit from this style of business practice. The insurer particularly specialises in general insurance services, such as providing medical and auto coverage.

Here’s what to expect from this latest initiative.

SECP took to X to share their remarks on the new move and further explain what their decision means for the business.

“This initiative aligns with SECP’s vision of fostering innovation, competition, and digital transformation in Pakistan’s financial sector. By supporting insurtech like Digi Insurance, SECP is paving the way for a more inclusive and resilient economy,” their statement read.

The organisation also noted that the new licence allows Digi Insurance, alongside future companies, the liberty to operate without the need for a physical branch. Customers can expect full services to be conducted online, with the company handling everything from onboarding and policy approval to claims settlement and beyond, without in-person interactions.

Apart from simpler and faster customer service, the shift also boasts benefits for businesses. This not only reduces start-up costs, but also creates a more even playing field for aspiring business owners coming from different socioeconomic backgrounds.

While Digi Insurance is the first non-life insurance company to receive this new licence, this is not the first time the SECP has granted permission for end-to-end digital services for a business. In fact, in February 2025, the SECP granted the same digital licence to Tamkeen Securities. This allowed the company to become the country’s first securities broker to operate on a fully online basis.

As the country moves towards prioritising digital-first activities, more businesses are expected to move to the online-only model.

In fact, the push for digitisation is not limited to the business sector. For instance, Prime Minister Shehbaz Sharif recently unveiled a new digital system for registering and regulating medical devices.

According to statements from the government’s office X account, the initiative is “a landmark shift towards digital governance: No manual processing, no physical file movement,” and will greatly speed up the administrative system stating, “what once took several months will now be completed in just 20 days.”