Pakistan, June 28 -- Pakistan's insurance sector is undergoing a quiet revolution-one that could redefine economic resilience, protect millions from poverty, and finally bring financial inclusion to the margins. With insurance penetration stuck below 1% of GDP, among the lowest in the region, a large portion of Pakistan's population remains exposed to health shocks, disasters, and asset loss. But recent years have seen a wave of digital disruption, government-backed strategies, and fintech-fueled innovation that together signal a turning point. For policymakers and the public alike, this transformation presents both urgent challenges and untapped opportunities.

The State Bank, SECP, and major private players have recognized that traditio...