The Securities and Exchange Commission of Pakistan has granted registration to the country’s first Shariah-compliant, digital-only non-life insurer, marking a major milestone in the evolution of Pakistan’s takaful and insurance sector.
According to the SECP, First Digital Takaful Company Limited has been issued the first-ever license to operate as a fully digital general takaful company, allowing it to offer end-to-end services without physical branches. The new operator will provide a complete digital customer journey, including onboarding, contribution payments, certificate issuance, and claims management, all through online platforms.
SECP officials said the approved product suite includes health takaful, personal accident takaful, travel takaful, and home takaful, designed to improve access, convenience, and customer-centric protection through digital channels.
The regulator said the introduction of a digital-only general takaful operator is expected to enhance competition in the insurance market, expand outreach to underserved segments, and encourage innovation across the takaful industry.
The approval aligns with SECP’s broader push to digitize financial services and promote technology-driven solutions in insurance and takaful, particularly to increase penetration in a market where insurance coverage remains low.
Pakistan’s insurance penetration stands at below 1% of GDP, while takaful has been growing steadily over the past decade due to rising demand for Shariah-compliant financial products. However, the sector has traditionally relied on physical distribution, limiting reach and increasing costs.
By allowing a digital-only model, regulators aim to lower entry barriers, reduce operating costs, and attract younger, tech-savvy consumers who are more comfortable with app-based and online financial services.
The SECP said it aims to promote seamless policyholder onboarding and improve service delivery by encouraging the adoption of digital and innovative solutions across the insurance and takaful industry.