Pakistan’s insurance industry continues to grow in terms of assets and premiums, but overall insurance coverage remains extremely low, according to industry leaders. Speaking about the sector, State Life CEO Shoaib Javed Hussain said 42 insurance companies are currently operating in Pakistan, with combined sector assets reaching Rs4 trillion and annual insurance premiums standing at Rs708 billion. Insurance companies have collectively paid around Rs450 billion in claims. Despite the growth in the size of the industry, insurance penetration remains at only 0.7% of GDP, highlighting the gap between the development of the insurance market and the level of coverage among the wider population.
The life insurance and family takaful segment accounts for a significant share of the industry, with combined assets of Rs3.30 trillion, annual premiums of Rs462 billion and claims of Rs373 billion. Around 63% of premiums in life insurance and family takaful are linked to the public sector, while conventional insurance accounts for 85% of the life insurance market compared with 15% for family takaful. Distribution also differs between market segments, with agency networks playing a major role in the public sector and private-sector businesses using channels such as bancassurance. These figures indicate that while life insurance has a sizable financial footprint, coverage remains concentrated across particular channels and segments.
The non-life insurance and general takaful segment has annual premiums of Rs245 billion and total assets of Rs720 billion, with companies paying around Rs70 billion in claims. Around 91% of non-life insurance premiums are linked to the private sector. TPL Insurance CEO Muhammad Aminuddin highlighted another major coverage gap, noting that 97% of vehicles in Pakistan currently operate without insurance. He said initiatives by the Securities and Exchange Commission of Pakistan (SECP) related to third-party motor insurance are expected to support broader vehicle coverage, with the objective of having all vehicles insured by 2030.
Digital adoption within the insurance sector also remains limited. According to State Life’s CEO, digital channels currently account for only 0.8% of insurance premiums, indicating considerable room for insurers to expand technology-based distribution and customer engagement. TPL Insurance’s Aminuddin also pointed to artificial intelligence as an important technology for the sector, saying it can support insurance products, risk assessment and claims payment processes. Greater use of digital channels and advanced technology could provide insurers with additional ways to reach customers and improve the delivery of insurance services, particularly as Pakistan seeks to expand formal financial protection.
The discussion also highlighted the importance of insurance and long-term savings in addressing broader financial security needs. State Life’s Shoaib Javed Hussain said insurance can contribute to long-term savings, health protection, pensions and family financial security. Separately, EFU Life CEO Muhammad Ali Ahmed said pension fund assets under management have reached Rs156 billion, representing a 333% increase since January 2021, while active accounts under voluntary pension schemes stood at only 143,000 as of December 2025. With Pakistan having a large working-age population and a significant informal employment sector, industry leaders called for greater development of government, employer-sponsored and individual pension systems alongside insurance-based long-term savings products.
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