Pakistan’s insurance sector, with a penetration rate of only 0.7%, is trailing behind its neighboring countries. However, recent developments indicate potential growth as players in the market seek opportunities for expansion and consolidation.
On November 4, 2022, at 2:00 PM GMT+5, Pakistani online insurance company Waada made a strategic move to establish a dominant position in the country’s insurance market. Waada acquired MicroEnsure Pakistan, a division of MIC Global operating in South Asia and Africa, in an all-stock transaction. While the exact value of the deal was not disclosed, Waada revealed that the combined businesses have 1.5 million active customers.
The acquisition allows Waada to solidify its position as the largest player in the South Asian country, gaining a foothold in the growing insurance market. This move comes after Waada recently concluded a successful $1.3 million seed round from regional angel investors and international venture capital firms.
With insurance penetration at a modest 0.7%, the consolidation in the market may open new avenues for players like Waada to capitalize on the potential for growth in the insurance sector. As Pakistan’s economy progresses and awareness of insurance products increases, further developments and investments are expected in the country’s insurance landscape.