PakistanÂ’s insurance industry wrote a gross annual premium of Rs. 432 billion as of December 2021, against Rs. 355 billion in 2020, registering a year-on-year growth of 21.7 percent.
As per the 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), from which Rs. 136 billion worth of claims were paid by the life insurance companies while the remaining Rs. 53 billion were paid by the non-life insurance companies.
The data provide an inclusive view of the insurance industry to the relevant stakeholders in a holistic manner which will assist them in making up-to-date policy decisions related to the insurance industry, through a presentation of consolidated insurance industry information.
The report adds that as of December 31, 2021, the insurance industry has a total of 41 active operators comprising of 30 non-life insurers/general takaful operators, 10 life insurers/family takaful operators, and one reinsurer.
In this regard, SECP Commissioner Sadia Khan stated that PakistanÂ’s insurance market holds massive untapped potential for growth. She said that the sector is rife with opportunities, for both domestic and foreign investors, in view of the size of the population in Pakistan and the increasing demand for affordable and innovative insurance solutions.
Moreover, Insurance Industry Statistics for the year 2021 are the result of data provided by the insurance companies in the formats specified by SECP. Being the first publication of its kind, the report will be a regular feature going forward, published annually.
The report revealed that the number of complaints also increased as the sector received 10,297 complaints in 2021 against 8,254 last year. Though, it also disposed of more complaints: 10,182 vs 8,086.
Of the total gross premiums of the non-life industry, the reports added that 56percent came from Sindh, followed by 35percent from by Punjab, 7 percent from Islamabad, while KP, Balochistan, GB and AJK each had a share of less than one percent.