Insurance Transformation Program

proposed

The objective of the proposed Insurance Sector Development Program (ISDP) is to increase insurance penetration across Pakistan and to reduce the social protection gap by strengthening the insurance industry's capacity, resilience, and efficiency. The proposed ISDP of $540 million to the Government of Pakistan includes (i) a policy-based loan of $500 million to be delivered through a programmatic approach over 3 subprograms, and (ii) a project loan of $40 million. The Insurance Sector Development Program will support the sequencing of the reforms to (i) enhance the legal and regulatory environment for deepening the insurance sector, (ii) improve institutional capacity across the industry by enabling digitization, and (iii) create greater demand for insurance through enhanced consumer awareness and implementation of compulsory insurance schemes.