Insurance industry: CCP examines competition, market structure, growth constraints

Business Recorder reported that the Competition Commission of Pakistan (CCP) convened a Competition Consultative Group meeting in Islamabad to review competition, market structure and growth limits in the insurance sector. According to the presentation, insurance contributed only 0.7 percent of GDP and density stood near USD 12 per person, even though the country has more than 240 million people. Agriculture, SMEs, health, microinsurance and rural markets were cited as large areas of untapped demand.

The presentation counted 44 insurers, made up of 36 conventional insurers, seven Takaful operators and one reinsurer, along with around 10.4 million policies. Of these, 7.6 million were life policies and 2.7 million non-life, while the sector directly employs 20,159 people. Identified constraints included bancassurance concentration, high entry barriers, claims disputes, low consumer awareness and limited digitalisation.

Tarar said the figures pointed to considerable room for expansion, and industry panels urged better data, digitalisation of the full insurance cycle and faster claims settlement. Regulator representatives also discussed the proposed Insurance Bill, 2026 and a risk-based solvency framework. The CCP said the deliberations would help identify where competition advocacy and policy interventions could support a more competitive market.