ISLAMABAD: With Pakistan increasingly vulnerable to climate change, experts have urged for greater insurance penetration to safeguard both urban and rural communities from weather-related risks.
Speaking to the media in Islamabad, Andrew Peterson, Managing Director of the Society of Actuaries (SOA), emphasized the urgent need for more insurance products tailored to damages caused by extreme weather events.
“From flash floods in the mountains to hailstorms in cities, the threats are widespread. Pakistan must develop mechanisms to protect lives, property, and livelihoods,” Peterson said.
Zain Ibrahim, SOA’s Regional Director, pointed to the recent hailstorm in Islamabad as a reminder that climate impacts are not confined to agricultural areas. “Ordinary car owners and even those with solar panels are at risk—yet insurance coverage remains limited,” he said, highlighting a serious gap between insurers and the general public.
The experts noted that farmers often lack awareness of available crop insurance schemes, while insurance companies are not proactive in promoting them. Nevertheless, a growing number of insurers in Punjab and Khyber Pakhtunkhwa are now offering products aimed at mitigating losses due to floods and droughts—products Ibrahim said were “even more vital than theft insurance” in the current climate.
To build resilience, both Peterson and Ibrahim underscored the importance of strengthening Pakistan’s actuarial profession. “Actuaries are critical in developing innovative, data-driven insurance solutions. Investing in actuarial education will empower the insurance industry to handle emerging risks,” Peterson added.
Founded in 1889, the SOA today boasts over 34,000 members globally. It supports actuaries in providing expert advice on financial and societal challenges through mathematics, predictive analytics, and financial modeling.
In Pakistan, interest in the actuarial field is rising. The SOA reported a 17 percent increase in exam candidates in 2024, with over 1,700 affiliate members now based in the country. The Securities and Exchange Commission of Pakistan (SECP) is also mandating insurance firms to establish dedicated actuarial functions—driving further demand for qualified professionals.
To support this growth, the SOA is offering exam discounts, scholarships, and partnerships with local universities to raise awareness and build capacity.
“This is a profession with global demand,” Peterson said. “Pakistani youth should explore careers in actuarial science—not only for financial growth but to help society prepare for the challenges ahead.”
