Pakistan insurance industry premiums rise 15% to PKR 778 billion in 2025

Pakistan’s insurance industry recorded 15% growth in gross premiums to PKR 778 billion in 2025, while total assets rose 9% to PKR 4.092 trillion, with growth also recorded across life, non-life and takaful business, according to data released by the Securities and Exchange Commission of Pakistan.

How much did Pakistan’s insurance industry grow in 2025?

Pakistan’s insurance industry generated PKR 778 billion in gross premiums in 2025, up 15% from PKR 677 billion a year earlier. Total assets increased 9% to PKR 4.092 trillion, while reported policies edged up to 10.4 million and insurance penetration remained at 0.7%.

Insurance density reached PKR 3,361 during the year. The industry comprised 44 insurers and operators, including eight life insurers, four family takaful operators, 28 non-life insurers, three general takaful operators and one reinsurer.

The life insurance segment, including family takaful, generated gross premiums of PKR 495 billion in 2025, compared with PKR 434 billion a year earlier. Public-sector insurers accounted for 61% of life-sector premiums, compared with 39% for private-sector insurers.

Participating policies accounted for 34% of life insurance premiums, followed by health policies at 30% and unit-linked policies at 28%. Life-sector gross claims increased to PKR 410 billion from PKR 380 billion in 2024.

How much did Pakistan’s insurance industry pay in claims?

SECP’s industry overview reported PKR 523 billion in total claims paid during 2025, compared with PKR 599 billion in 2024. Its detailed segment tables separately report PKR 410 billion in life-sector gross claims and PKR 138 billion in non-life claims paid, which the report labels as different measures.

More than 33,000 individual-life death claims were paid during the year. In total, insurers settled 464,895 individual-life claims out of 712,838 claims outstanding during 2025, including claims carried into the year and newly reported claims.

The non-life segment, including general takaful, generated PKR 283 billion in gross premiums, up from PKR 243 billion in 2024. Motor insurance accounted for 28% of non-life premiums, followed by fire and property at 26%, engineering at 15% and accident and health at 13%.

Non-life insurers paid PKR 138 billion in claims, up from PKR 92 billion a year earlier. They settled 720,726 accident and health claims, 282,262 motor claims and 10,981 fire and property claims during 2025.

How quickly are takaful and digital insurance growing in Pakistan?

Family takaful premiums increased 23% to PKR 81 billion in 2025 from PKR 66 billion a year earlier, while general takaful premiums rose 33% to PKR 42 billion from PKR 31 billion.

Family takaful accounted for 16% of life insurance premiums, up from 15% in 2024, while general takaful represented 15% of non-life premiums, compared with 13% a year earlier. The report’s sector overview puts takaful’s overall share of insurance premiums at 16%.

Combined takaful contributions rose from PKR 97 billion to PKR 123 billion during the year, according to SECP Chairman Dr. Kabir Ahmed Sidhu’s message accompanying the report.

Digital distribution also expanded, with premiums generated through digital channels rising from PKR 4 billion in 2024 to PKR 6.8 billion in 2025. Despite that growth, digital channels still accounted for just 0.85% of total industry premiums.

Life insurance excluding health accounted for 48% of overall premium distribution, while non-life insurance excluding health represented 32% and health insurance 20%. Despite growth in premiums, assets, takaful and digital distribution, overall insurance penetration remained at 0.7%.