Insurance gross premiums hit Rs432bn in 2021

ISLAMABAD: Country’s insurance industry posted gross annual premium of Rs432 billion during 2021, as compared to Rs355 billion in 2020, recording year-on-year growth of

21.7 percent, latest industry data showed on Friday.

The data compiled by the Securities and Exchange Commission of Pakistan (SECP) was released in a report titled ‘Insurance Industry Statistics for the calendar year 2021’.

The report would prove instrumental in empowering the stakeholders to make educated decisions, the corporate sector regulator said in a statement.

“These statistics will help them in making informed policy decisions related to the insurance industry, through presentation of consolidated insurance industry,” the SECP said.

The report states that as of December 31, 2021, insurance industry has 41 active operators consisting of 30 non-life insurers/general takaful operators, 10 life insurers/family takaful operators and one reinsurer.

Claims paid during 2021 were Rs189 billion (2020: Rs170 billion), out of which Rs136 billion worth of claims were paid by the life insurance companies and remaining Rs53 billion paid by the non-life insurance companies.

In her statement, the SECP Commissioner Sadia Khan said that Pakistan’s insurance market had enormous untapped potential for growth.

“The sector is rife with opportunities, for both local and foreign investors, considering the size of population in Pakistan and the growing demand for affordable and innovative insurance solutions,” she added.

“Insurance Industry Statistics for the year 2021 are an outcome of data provided by the insurance companies in the formats specified by SECP.”

The report being the first publication of its kinds, would be a regular feature going forward, published annually, she added.