Without meeting the insurance needs of low-income people, the risks to economic development cannot be eliminated. The recent floods proved this point because in the absence of proper insurance coverage, the economic losses suffered by the poor had a devastating effect on the financial stability.

While realising the needs of the micro-insurance segment and the huge potential economic impact on the target community, the apex regulator, Securities and Exchange Commission of Pakistan (SECP) initiated the dialogue with the insurance industry last year. In this regard, a task force has been set up comprising major stakeholders including representatives from SECP and State Bank of Pakistan, insurance companies and microfinance banks, and supported by the Center for International Private Enterprise.c