The Securities and Exchange Commission of Pakistan (SECP) has proposed a series of reforms aimed at improving the resolution of insurance-related complaints, including the establishment of additional insurance tribunals, expansion of dispute resolution committees and development of a centralized digital complaints system. The proposals follow a significant volume of complaints received by policyholders through different forums. According to an SECP report cited in the latest report, 37,029 insurance-related complaints were received in 2025, highlighting the scale of disputes requiring resolution within Pakistan’s insurance sector. The proposed reforms are intended to make complaint handling more accessible and organized while improving the mechanisms available to policyholders seeking resolution. Among the recommendations is an increase in the number of insurance tribunals according to geographical requirements, which could provide policyholders in different regions with greater access to appropriate legal forums. The SECP has also proposed publishing a list of designated sessions courts so that policyholders can more easily identify the appropriate forum for their insurance-related disputes. The recommendations form part of wider efforts to improve the institutional framework through which insurance complaints are addressed and to make the process more accessible for consumers.
The SECP has also proposed expanding the reach of committees responsible for handling smaller insurance disputes, alongside measures to ensure timely appointments to insurance tribunals. Dispute resolution committees can provide an alternative mechanism for addressing relatively smaller claims and complaints without requiring every matter to proceed through more formal legal proceedings. Expanding their reach could provide policyholders with additional channels for resolving disputes, particularly where the nature or value of a complaint makes committee-based resolution appropriate. The regulator has also emphasized the importance of timely appointments to insurance tribunals, as delays in establishing or maintaining these forums can affect the time required to resolve cases. These proposals come as Pakistan’s insurance sector continues to work through issues involving consumer awareness, access to insurance and the mechanisms available when disagreements arise between policyholders and insurers. By addressing both the availability of dispute resolution forums and the administrative processes supporting them, the SECP’s recommendations seek to improve how insurance complaints move through the system. The proposed reforms would require the relevant legal and institutional arrangements to be implemented before becoming operational.
A key component of the proposed reforms is the introduction of a centralized digital complaints system. Under the proposed framework, policyholders would be able to submit complaints online along with supporting documents through an integrated platform. The system is intended to make the complaint submission process more convenient while helping organize information required for resolving individual cases. Digital submission could also reduce reliance on physical documentation and allow complaints to be processed through a more centralized mechanism. For policyholders, the ability to submit complaints and supporting evidence online could make the process more accessible, particularly for individuals who may face difficulties visiting offices or navigating multiple complaint forums. The proposal is part of the SECP’s broader efforts to incorporate digital tools into financial-sector regulation and consumer services. A centralized platform could also provide the regulator with a more structured view of complaints received across the insurance sector, although the effectiveness of such a system would depend on its implementation, integration with existing mechanisms and accessibility for users. The proposed reforms therefore combine institutional changes, including additional tribunals and expanded committees, with digital measures designed to modernize the way insurance complaints are submitted and managed.
The SECP has further recommended legal measures that would allow complaints involving government-owned insurance companies to be referred to the Federal Insurance Ombudsman. This proposal would expand the avenues available to policyholders seeking resolution in cases involving state-owned insurers. Together with the proposed insurance tribunals, dispute resolution committees and centralized digital complaints platform, the recommendation forms part of a broader package focused on improving the insurance complaint resolution framework. The 37,029 complaints recorded during 2025 provide an indication of the volume of cases handled through existing mechanisms and the need for systems capable of processing complaints efficiently. The proposed digital platform could become an important component of that framework if implemented, particularly by allowing policyholders to submit complaints and supporting documents through a single online system. The SECP’s proposals now represent planned regulatory and institutional reforms rather than an already operational nationwide system. Their implementation will depend on the relevant legal, administrative and technological steps. The measures nevertheless indicate a move toward combining digital complaint handling with expanded formal and alternative dispute resolution mechanisms within Pakistan’s insurance sector.
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