This study investigates the willingness to pay for supplementary health insurance and also describes the health insurance industry of Pakistan.200 respondents were selected from different private and government organizations in Islamabad and Rawalpindi. Probit regression was used to examine the impact of income, age, city, health status, anticipated expenditure, education on the willingness to pay for supplementary health insurance. The results have revealed that 65.5% of the people were willing to buy supplementary health insurance. Income of head of household, years of education, family size, and age turned out to be significant factors in determining this decision. These results are similar to the literature reviewed in this context. While city, health status, anticipated expenditure had no impact on the probability of people saying yes to pay for supplementary health insurance unlike the studies done in other countries. Supervisor:- Dr Shahzad Ali Khan Co-Supervisor:- Mahmood Khalid