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39% of the general public in Pakistan does not have any understanding about insurance.

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According to a survey conducted by Gallup Pakistan, 39% Pakistanis do not have any understanding at all about insurance. On the other hand, 58% respondents claimed to somewhat understand insurance whereas only 3% have a lot of understanding about insurance. These results are a part of the nationwide Access to Finance Study conducted by the State Bank of Pakistan in 2015 with the intent of determining the degree of financial inclusiveness of the Pakistani public.

This press release is part of a special series that aim to foster an empirical understanding of financial inclusion in Pakistan and that hope to create a collaborative network of individuals working on the topic. This press release focuses on empirically determining the proportion of Pakistanis who are aware of insurance. Insurance is a tool which reduces the cost of loss or effect of loss caused by a variety of risk by accumulating an individual’s finances to meet that individual’s unforeseen losses. Insurance is of a variety of types, such as life insurance, medical insurance, vehicle insurance, property insurance, accidental insurance, etc. However, the concept of insurance is still only growing at a moderate pace in the Country. A possible impediment to its growth can perhaps be attributed to the general suspicion that Pakistanis have regarding financial transactions, particularly the ones that involve having to pay a certain sum per month for a service without seemingly any return. However, in lieu of the limited financial literacy of the majority public, it is pertinent to first be aware of the proportion of the Pakistani public that is aware of insurance.

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