Insurance companies pay over 1m claims worth Rs542bn in 2025: SECP

September 25, 2026 (MLN): Insurance companies paid over 1 million claims in 2025, according to data released by the Securities and Exchange Commission of Pakistan (SECP).

The SECP released data on claims paid by the insurance industry for the first time.

The life insurance sector paid total claims worth Rs410bn, while non-life insurance companies paid claims worth Rs132bn.

Life insurance companies paid over 33,000 death-related claims, while non-life companies settled more than 720,000 health and accident claims.

More than 282,000 motor insurance claims were paid, while around 11,000 fire and property-related claims were settled.

SECP Chairman Dr. Kabir Ahmed Sidhu said that disclosure of insurance companies' claims data will enhance accountability. He said claims settlement is important for policyholders' confidence in the insurance industry.

The overall insurance industry premium increased by 15% to Rs778bn, while insurance industry assets reached Rs4.1tr, up over 9% from Rs3,738bn in 2024.

Insurance penetration stood at 0.7% and insurance density at Rs3,361. Of the total premium, 84% came from conventional insurers and 16% from the takaful sector, whose contribution rose 27% to Rs123bn from Rs97bn in 2024.

Premium generated through digital distribution channels increased 71%, rising from Rs4bn in 2024 to Rs6.8bn in 2025, representing 0.85% of total industry premium.

The industry contributed Rs83.61bn to the national economy during the year, comprising Rs48.25bn in income tax, Rs21.63bn in sales tax, Rs6.88bn in federal excise duty, Rs3.94bn in stamp duty and Rs2.92bn in other contributions. The sector employed 20,159 people directly and engaged 235,197 sales agents.

Life insurance

Life insurance premium rose 14% to Rs495bn from Rs434bn in 2024, while gross claims increased to Rs410bn from Rs380bn. Total policies stood at 7.6m, against 7.9m in 2024. Life insurance penetration was recorded at 0.43%.

Public sector insurers accounted for 61% of life premium and private insurers 39%. Within the public sector, 98% of premium came through the agency channel, while 45% of private sector premium came through bancassurance.

Punjab remained the largest market for individual life insurance, contributing 59% of gross premium (Rs195.9bn), followed by Sindh at 25% (Rs83.1bn) and Khyber Pakhtunkhwa at 6% (Rs20.5bn).

Approximately 1m new life insurance policies were issued during the year, with 47% falling in the premium band of Rs0-25,000 by count, while policies of Rs1m and above contributed 33% of new business premium.

Of 712,838 individual life claims outstanding during the year (including new claims reported), 464,895 were settled comprising 33,317 death claims, 893 other-than-death claims, 311,143 surrender claims and 119,542 maturity claims.

Non-life insurance

Non-life insurance premium (including general takaful) rose 16% to Rs283bn from Rs243bn in 2024, while claims paid increased sharply to Rs138bn from Rs92bn. Total policies stood at 2.7m, up from 2.4m. Non-life insurance penetration was 0.28%, with 11m lives covered through health business.

Motor insurance was the largest class by premium at 28% (Rs78.6bn), up 35% from Rs58.2bn in 2024, followed by fire and property damage at 26% (Rs77.9bn) and engineering at 15% (Rs41.2bn). Health-related premium (accident and health) grew 42% to Rs35.7bn from Rs25.1bn.

Motor also led claims paid at 33% (Rs46bn), followed by engineering at 24% (Rs33.1bn) and accident and health at 16% (Rs21.4bn). Of 1,353,859 claims outstanding industry-wide, 1,067,104 were settled, with accident and health business alone accounting for 720,726 of paid claims.

Sindh remained the largest contributor to non-life premium at 46% (Rs113.99bn), followed by Punjab at 37% (Rs90.67bn) and the Federal area at 10% (Rs23.38bn). The industry's overall retention ratio stood at 44%, unchanged from 2024.

Gender-disaggregated data

Male policyholders accounted for 76% of individual life premium and 74% of total sum assured, with female policyholders representing the remaining 24% and 26% respectively. Across non-life health business, male lives covered stood at 76% against 24% for females.

Of total complaints received in 2025, 94% were lodged by male policyholders and 6% by female policyholders, broadly unchanged from 2024's split of 93%/7%.

Takaful sector

Family takaful premium rose 23% to Rs81bn from Rs66bn, representing 16% of total life insurance premium, up from 15% in 2024. General takaful contributions grew 33% to Rs42bn from Rs31bn, representing 15% of non-life premium, up from 13%.

Within general takaful, motor was the largest class at 38% of contributions, followed by health at 33%, fire at 17%, and marine and miscellaneous at 6% each. Health takaful was the fastest-growing segment, with contributions rising from Rs2bn in 2020 to Rs14bn in 2025.

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