The Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmad Sidhu on Friday said that insurance companies had paid over one million claims in 2025.
The SECP released data on claims paid by the insurance industry for the first time.
The life insurance sector paid total claims worth Rs410 billion, while non-life insurance companies paid claims worth Rs132 billion.
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.
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 Rs778 billion, while insurance industry assets reached Rs4.1 trillion, up over 9% from Rs3,738 billion 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 Rs123 billion from Rs97 billion 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 Rs83.61 billion to the national economy during the year, comprising Rs48.25 billion in income tax, Rs21.63 billion in sales tax, Rs6.88billion in federal excise duty, Rs3.94 billion in stamp duty and Rs2.92 billion in other contributions. The sector employed 20,159 people directly and engaged 235,197 sales agents.
Life insurance premium rose 14% to Rs495 billion from Rs434 billion in 2024, while gross claims increased to Rs410 billion from Rs380 billion. 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.
