Pakistan Insurance Industry’s Gross Premium Increases by 21.7% to Rs. 432 Billion in 2021

Pakistan’s insurance industry has written a gross annual premium of Rs. 432 billion as of December 2021, as compared to Rs. 355 billion in 2020, recording year-on-year growth of 21.7 percent.

According to Insurance Industry Statistics for the year 2021 published by the Securities and Exchange Commission of Pakistan (SECP), claims paid by the sector during 2021 were Rs. 189 billion (2020: Rs. 170 billion), out of which Rs. 136 billion worth of claims were paid by the life insurance companies and the remaining Rs. 53 billion paid by the non-life insurance companies.

The statistics provide a comprehensive view of the insurance industry to the relevant stakeholders in a holistic manner which will help them in making informed policy decisions related to the insurance industry, through a presentation of consolidated insurance industry information.

The report states that as of December 31, 2021, the insurance industry has 41 active operators consisting of 30 non-life insurers/general takaful operators, 10 life insurers/family takaful operators, and one reinsurer.

SECP Commissioner Sadia Khan said that Pakistan’s insurance market holds enormous untapped potential for growth. She added that the sector is rife with opportunities, for both local and foreign investors, considering the size of population in Pakistan and the growing demand for affordable & innovative insurance solutions.

Insurance Industry Statistics for the year 2021 are an outcome of data provided by the insurance companies in the formats specified by SECP. The report being the first publication of its kinds, will be a regular feature going forward, published annually. The report can be accessed here.