According to the 2022 report of the Securities and Exchange Commission of Pakistan, the insurance industry in Pakistan saw a 24% increase in GWP to PKR433bn ($1.93bn) in 2021, compared to PKR347bn in 2020.
In 2021, the GWP of the life insurance sector was PKR291 billion, while the GWP of the non-life insurance sector was PKR142 billion.
The sole non-life reinsurance business in Pakistan, which is government-owned, underwrote a reinsurance premium totaling PKR22 billion.
SECP initiatives and regulatory changes in the insurance industry are credited with the industry's expansion. According to the annual report, while the impact of implemented regulatory reforms will become more obvious in the years to come, certain good results are already apparent.
On December 31, 2021, the insurance sector's total assets totaled PKR2,149 billion, an 8.2% increase over the total asset amount of PKR1,987 billion the previous December.
changes and advancements in the insurance industry
According to the SECP, a number of policy reforms were made in 2021 with the aim of enhancing the insurance regulatory framework, market growth, enhancing consumer protection, and enhancing compliance. The SECP has also started implementing reforms to weaken the consumer protection system and stop malpractices.
The following were some of the major actions and reforms made to boost the insurance industry:
The unit-linked product framework should be improved.
Introducing dedicated micro insurers and digital-only insurers
accelerating the selection of directors and CEOs
the improvement of corporate governance.
After more than a decade, a new private life insurance company offering family takaful services was registered under the Insurance Ordinance, 2000.
16 new licenses for intermediaries, including insurance brokers (3), reinsurance brokers (1), insurance surveyors (11) and a third-party administrator for health insurance, were given to newcomers to the market.
Index-based crop insurance products were pilot-tested across the nation by three non-life insurance companies.
28 non-lief insurers, 8 life insurers, 2 general takaful companies, 2 family takaful companies, and 1 reinsurer were all active in Pakistan as of December 31.
