Pakistan’s insurers settle over 1mn claims in 2025: SECP

Pakistan's insurers settled over one million claims in 2025, as confirmed by the Securities and Exchange Commission of Pakistan (SECP) in its Insurance Industry Statistics Report for the year. The report sheds light on the scale of claims across motor, accident, health, and fire and property sectors. Life insurance claims soared to Rs410 billion, an increase from Rs380 billion in 2024, with death claims rising to around Rs37 billion.

Non-life claim payments reached approximately Rs138 billion, up from Rs92 billion in the previous year. This marks a significant rise in claims settlement figures, with life insurers handling more than 33,000 death claims and non-life insurers settling over 720,000 accident and health claims, 282,000 motor claims, and around 11,000 fire and property claims.

SECP Chairman Dr Kabir Sidhu emphasized the importance of claims settlement as a key performance indicator, stating that publishing claim amounts and counts would enhance accountability, build policyholders' trust, and promote sustainable growth. The SECP is currently reviewing insurers' claims-handling processes and has released draft Market Conduct Rules for Insurers, 2026, for public consultation.

The insurance industry exhibited robust growth in 2025, with total assets increasing by over 9% to Rs4.1 trillion and gross written premium rising by 15% to Rs778 billion. Life insurance premiums grew by 14%, while non-life premiums expanded by 16%. Within the private life insurers, health insurance premiums surged by 49% to Rs30.4 billion, and term life premiums climbed by about 37% to over Rs19.7 billion.

In the non-life sector, motor premiums expanded by around 35% to more than Rs78.5 billion, and accident and health premiums grew by approximately 42% to over Rs35.7 billion. Digital distribution channels contributed significantly, with premiums generated through these channels rising by 71% to around Rs6.8 billion. The report also indicates that Takaful constituted 16% of the life insurance market and 15% of the non-life market.