Pakistan’s insurers settled more than one million claims in 2025 as the industry recorded strong growth in premiums, assets and digital insurance.

ISLAMABAD: Pakistan’s insurance industry settled more than one million claims worth approximately Rs548 billion in 2025, reflecting a significant expansion in claims activity across both life and non-life insurance segments.

The Securities and Exchange Commission of Pakistan (SECP) disclosed the figures in its Insurance Industry Statistics Report 2025, released on September 24, 2026. The regulator’s latest report provides comprehensive data on the insurance industry for 2025.

Life insurers paid around Rs410 billion in claims during the year, while non-life insurers settled approximately Rs138 billion.

Life insurance claims rise to Rs410 billion

Life insurance claim payments increased from around Rs380 billion in 2024 to approximately Rs410 billion in 2025.

Death-related claims also increased, rising to around Rs37 billion from Rs33 billion a year earlier.

More than 33,000 death claims were settled by life insurers during 2025, highlighting the scale of claims activity in the sector.

Non-life claims surge to Rs138 billion

Non-life insurers recorded a substantial increase in claims payments, with total settlements rising from Rs92 billion in 2024 to approximately Rs138 billion in 2025.

The latest figures include more than 720,000 accident and health claims, over 282,000 motor claims and approximately 11,000 fire and property claims.

The increase reflects growing claims activity across several major categories of non-life insurance.

SECP seeks greater claims transparency

SECP Chairman Dr Kabir Ahmed Sidhu said claims settlement was an important benchmark for assessing the performance of insurance companies.

He emphasised that greater disclosure of both claim values and volumes could strengthen accountability and policyholders’ confidence while supporting the sustainable development of the insurance market.

The SECP is reviewing insurers’ claims-handling mechanisms and analysing claims data as part of broader efforts to improve market conduct and customer outcomes.

The regulator has also placed the draft Market Conduct Rules for Insurers, 2026 before stakeholders for consultation. The draft framework was published by the SECP in August 2026 and includes proposed timelines relating to insurance claims.

Insurance industry assets reach Rs4.1 trillion

The report showed broad-based growth across Pakistan’s insurance industry during 2025.

Total industry assets increased by more than 9 per cent to Rs4.1 trillion, while gross written premium rose 15 per cent to Rs778 billion.

Life insurance premiums increased by 14 per cent, while non-life insurance premiums recorded stronger growth of 16 per cent.

The expansion followed significant growth already recorded in 2024, when the industry’s total assets reached Rs3.55 trillion and gross premiums rose to Rs677 billion.

Health and term life premiums expand

Within the private life insurance segment, health insurance premiums increased by 49 per cent to Rs30.4 billion.

Term life premiums also recorded strong growth of approximately 37 per cent, reaching more than Rs19.7 billion.

The figures indicate increasing activity across different life insurance products, alongside the overall expansion of the sector.

Motor and health insurance drive non-life growth

The non-life segment also recorded strong expansion during the year.

Motor insurance premiums increased by around 35 per cent to more than Rs78.5 billion, while accident and health insurance premiums rose approximately 42 per cent to more than Rs35.7 billion.

The growth in these categories coincided with the sharp increase in accident, health and motor claims recorded during the year.

Digital insurance premiums surge 71%

Digital distribution emerged as one of the fastest-growing channels in Pakistan’s insurance market.

Premiums generated through digital platforms increased by 71 per cent to around Rs6.8 billion, highlighting the growing use of technology in insurance distribution.

The SECP has continued to pursue digitalisation initiatives in the insurance sector. In September 2026, the regulator said digital transformation could help expand insurance coverage and improve access to insurance products.

Takaful maintains growing market presence

The report also highlighted the continued expansion of Takaful, Pakistan’s Shariah-compliant insurance segment.

Takaful accounted for 16 per cent of the life insurance market and 15 per cent of the non-life insurance market during 2025.

The figures point to continued growth across both conventional insurance and Shariah-compliant products, while digital distribution is emerging as an increasingly important channel.

SECP focuses on claims and customer outcomes

The latest industry statistics come as the SECP increases its focus on claims transparency, market conduct and grievance handling.

The regulator has separately proposed measures to strengthen insurance grievance redressal and has been reviewing market conduct standards for insurers.

With claims exceeding Rs548 billion in 2025 and insurance premiums reaching Rs778 billion, the latest data provide a detailed picture of the expanding scale of Pakistan’s insurance market and the regulator’s increasing focus on transparency and policyholder protection.