Insurance sector grows to Rs3.5tr as takaful leads expansion

August 21, 2025 (MLN): The insurance industry in Pakistan witnessed notable growth in 2024, with total assets rising to Rs3.5 trillion from Rs2.9tr a year earlier. Gross premiums recorded a 7% YoY increase and reached Rs677bn compared to Rs631bn in 2023.

The Securities and Exchange Commission of Pakistan (SECP), in its latest release of the Insurance Industry Statistics 2024, highlighted the sector’s overall performance and emerging trends.

The takaful segment continued its strong upward trajectory, with family takaful contributions expanding by 37% and general takaful by 24%, pushing the combined premium volume close to Rs100bn.

source: Insurance Industry Statistics 2024, SECP

Private sector life premiums also surged by 25%, while premiums generated through digital channels more than tripled, reflecting an accelerating shift toward technology-driven solutions.

SECP Commissioner Insurance, Mujtaba Ahmad Lodhi, focused on the growing significance of insurance in fostering financial stability and economic development while speaking at the launch of the report.

He described the sector as a “vital pillar” of the financial system, citing its role in providing risk protection, mobilizing long-term funds, and supporting the capital markets.

Looking ahead, Lodhi outlined SECP’s five-year sectoral development plan aimed at sustaining momentum through reforms and innovation.

Priorities include working with provincial governments on agricultural and disaster risk insurance, introducing mandatory coverages, promoting digital inclusion, and strengthening partnerships with global institutions such as UNDP and the Asian Development Bank.

He also stressed the phased adoption of international standards like IFRS 17 and the Risk-Based Capital regime.

The 2024 Insurance Industry Statistics, the fourth edition of SECP’s annual series, were compiled from data submitted by insurance companies and are available on the Commission’s website.

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