Karachi: Pakistan has taken a significant step toward enhancing the transparency and efficiency of its motor insurance sector with the launch of the Centralized Motor Insurance Repository, spearheaded by the Central Depository Company of Pakistan Limited (CDCPL). This initiative, guided by the Securities and Exchange Commission of Pakistan (SECP) and in collaboration with the Insurance Association of Pakistan (IAP), aims to provide a comprehensive database to improve underwriting practices and tackle insurance fraud.
According to a statement by Central Depository Company of Pakistan Limited, the repository was introduced by SECP Chairman Akif Saeed and CDC CEO Badiuddin Akber at the InsureImpact Conference Pakistan 2025 in Karachi. The theme of the conference, "Journey to an Insured Pakistan - Fostering Collaboration, Engagement and Innovation," underscores the collaborative approach taken to address the challenges in the motor insurance industry.
The SECP's 2023 report on Motor Third Party (MTP) Insurance highlighted the need for such a repository to address the low coverage of motor vehicle insurance in Pakistan. With less than 3% of vehicles insured in the country, the repository is seen as a vital tool for increasing insurance coverage. This contrasts sharply with higher coverage rates in neighboring countries like Bangladesh and Sri Lanka, where rates stand at 36% and 73%, respectively.
The repository's development is structured in phases. Phase 1 focuses on establishing a data repository for industry-wide data sharing and regulatory oversight. Phase 2 will involve integration with registration authorities for real-time insurance status verification, and Phase 3 will add claims-related data and integrate with other authorities, providing value-added features for insurers and policyholders.
Several insurance partners have already been onboarded, including Adamjee Insurance Company Limited, Alfalah Insurance Company Limited, and Jubilee General Insurance Limited, among others. This collaborative effort is expected to make motor insurance more accessible and secure, contributing to broader economic growth in Pakistan.
With a history of delivering financial solutions, CDC is poised to transform the motor insurance landscape, fostering trust and innovation in the sector.