Pakistan’s insurance industry recorded strong growth in 2025, with gross premiums rising 15% to Rs. 778 billion, while total industry assets increased 9% to Rs. 4.092 trillion, according to data released by the Securities and Exchange Commission of Pakistan (SECP).
The SECP said the data provides a detailed overview of the insurance sector for the first time, including claims paid across different segments of the industry. The number of total insurance policies increased marginally to 10.4 million in 2025 from 10.3 million a year earlier, while insurance penetration stood at 0.7% and insurance density reached Rs. 3,361.
The regulator said 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.
Life insurance
The life insurance sector generated gross premiums of Rs. 495 billion in 2025, compared with Rs. 434 billion in 2024, according to the SECP data. Life insurers paid gross claims of Rs. 410 billion during the year, up from Rs. 380 billion in 2024.
The sector accounted for 61% of premium distribution, compared with 39% for private-sector insurers.
The SECP data showed that participating policies accounted for 34% of life insurance premiums, followed by health policies at 30% and unit-linked policies at 28%. Life insurers also paid more than 33,000 death-related claims during 2025, according to the data released by the regulator.
Non-life insurance
Non-life insurers generated the remaining share of the industry’s premium business, with motor insurance accounting for 28% of non-life premiums, fire and property 26%, engineering 15%, and accident and health 13%.
According to the SECP data, non-life insurers paid Rs. 132 billion in claims during 2025. More than 720,000 health and accident-related claims were settled during the year, while more than 282,000 motor insurance claims were paid. Nearly 11,000 claims related to fire and property were also settled.
Across the broader insurance industry, total claims paid stood at Rs. 523 billion in 2025, compared with Rs. 599 billion in 2024, according to the SECP’s industry overview.
Takaful gains share
The takaful segment continued to expand, with family takaful premiums increasing 23% to Rs. 81 billion in 2025 from Rs. 66 billion in 2024. General takaful premiums rose 33% to Rs. 42 billion from Rs. 31 billion a year earlier.
Family takaful accounted for 16% of total life insurance premiums, compared with 15% in 2024, while general takaful represented 15% of total non-life insurance premiums, up from 13%.
Overall, takaful accounted for 16% of the insurance industry’s premium business.
The SECP said there were four dedicated family takaful operators, seven family window takaful operators, three dedicated general takaful operators and 20 general window takaful operators.
Product and distribution trends
Life insurance excluding health accounted for 48% of overall premium distribution, while non-life insurance excluding health represented 32% and health insurance 20%.
The regulator said digital insurance also recorded significant growth, with premiums generated through digital channels increasing 71% during 2025.
SECP Chairman Kabir Sidhu said disclosure of claims data would improve transparency and accountability in the insurance sector. He said timely claims settlement was important for maintaining policyholders’ confidence in insurance products.
The SECP said the publication of claims information would provide greater visibility into the industry’s performance and help strengthen transparency around insurance services.
The industry’s gross premium increased from Rs. 677 billion in 2024 to Rs. 778 billion in 2025, while total assets rose from Rs. 3.738 trillion to Rs. 4.092 trillion.
Despite the expansion, insurance penetration remained relatively low at 0.7%, highlighting the limited reach of insurance products compared with the size of Pakistan’s economy and population.