Pakistan’s insurance coverage remains low despite industry growth

According to Mettis Global, State Life CEO Shoaib Javed Hussain said Pakistan's insurance industry is expanding, yet insurance penetration remains very low. He put the number of insurers operating in the country at 42, with combined assets of Rs4 trillion and annual premiums of Rs708 billion. Penetration stands at 0.7% of GDP, while premiums rise about 15% a year, and digital channels contribute only 0.8% of premiums.

Hussain said life insurance and family takaful hold Rs3.30 trillion in assets, with Rs462 billion in annual premiums and Rs373 billion in claims paid. About 63% of those premiums are tied to the public sector, while conventional products make up 85% of the life market and family takaful 15%. The non-life and general takaful segment reports Rs245 billion in annual premiums, Rs720 billion in assets and Rs70 billion in claims paid, with 91% of its premiums linked to the private sector.

TPL Insurance CEO Muhammad Aminuddin said 97% of vehicles in Pakistan operate without cover. He added that the SECP's third-party motor initiatives will bring all vehicles under coverage by 2030, and urged insurers to adopt artificial intelligence to stay competitive. Separately, EFU Life CEO Muhammad Ali Ahmed put pension fund assets at Rs156 billion, up 333% since January 2021, while active voluntary pension accounts stood at only 143,000 as of December 2025.