Pakistan’s insurance sector has recorded remarkable growth in 2024, with total assets climbing to Rs. 3.55 trillion from Rs. 2.9 trillion a year earlier. The expansion was fueled largely by the continued rise of the takaful segment, which has become one of the most dynamic areas of the market.
Premiums on the Rise
Gross premiums across the industry reached Rs. 677 billion in 2024, marking a 7% increase over the previous year’s Rs. 631 billion. Within that, family takaful contributions surged by 37% while general takaful grew by 24%. Together, takaful premiums are now nearing the Rs. 100 billion mark, according to data published in the Securities and Exchange Commission of Pakistan’s (SECP) Insurance Industry Statistics 2024.
SECP: Insurance Now Central to Economic Growth
Speaking at the report’s launch, SECP Insurance Commissioner Mujtaba Ahmad Lodhi stressed that insurance is no longer a peripheral financial service in Pakistan but an essential part of the country’s economic backbone. He highlighted its role in protecting businesses and individuals from risk, channeling long-term capital, and strengthening domestic financial markets.
Key Trends Shaping the Sector
The report points to several encouraging developments:
- Life insurance revival: Private sector life premiums grew by 25%.
- Digital adoption: Premiums collected via digital platforms tripled compared to last year.
- Takaful momentum: Growth in both family and general takaful continues to outpace traditional insurance.
These shifts suggest not just recovery but also changing consumer behavior, particularly the growing trust in digital and shariah-compliant financial products.
What Comes Next
To sustain this momentum, SECP has outlined a five-year roadmap. Priorities include:
- Expanding agricultural and disaster risk coverage through coordination with provincial governments.
- Partnering with global institutions such as UNDP and the Asian Development Bank to strengthen resilience.
- Gradually introducing global best practices, including IFRS 17 accounting standards and a risk-based capital framework.
- Pushing for wider mandatory insurance coverage and accelerating digital financial inclusion.
A Sector in Transition
The steady expansion of takaful, alongside rising digital uptake, shows how Pakistan’s insurance industry is diversifying. With SECP’s push for modernization and international alignment, the sector is positioning itself not just for growth, but also for greater stability and relevance in the broader financial system.
