SECP reports Rs3.55tr assets in insurance industry 2024

Takaful contributions rise 37% as premiums expand to Rs677bn

Islamabad, August 21 — The Securities and Exchange Commission of Pakistan (SECP) has released its Insurance Industry Statistics 2024, showing continued growth in the sector with total assets climbing to Rs3.55 trillion by year-end. The report, published Thursday, marks the fourth volume of the annual statistical series and provides a detailed snapshot of industry performance as of December 31, 2024.

According to the data, industry assets expanded from Rs2.9 trillion in 2023 to Rs3.554 trillion in 2024, reflecting a significant year-on-year increase. Gross premiums rose 7% to Rs677 billion, compared with Rs631 billion in the previous year. The takaful segment maintained strong momentum, with family takaful contributions up 37% and general takaful up 24%, bringing the combined premium volume near Rs100 billion.

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Commissioner Insurance, Mujtaba Ahmad Lodhi, speaking at the launch of the report, said the sector was playing an increasingly vital role in Pakistan’s economic stability and financial development. “Insurance is a key pillar of the financial system. It provides risk protection, mobilizes long-term funds, and contributes to the deepening of capital markets,” he told reporters.

He highlighted encouraging indicators, including a 25% increase in private sector life insurance premiums, a threefold jump in premiums generated through digital distribution channels, and the rapid expansion of takaful. These trends, he said, signaled renewed economic recovery and greater consumer trust in insurance products.

The Commissioner outlined SECP’s priorities for sustaining growth under a five-year sectoral development plan. These include collaboration with provincial governments to strengthen agricultural and disaster risk insurance, partnerships with international institutions such as the UNDP and Asian Development Bank, and reforms to introduce mandatory insurance coverage in selected areas. Other focus areas include promoting innovation, expanding digital financial inclusion, and phasing in international benchmarks such as IFRS 17 and the Risk-Based Capital regime.

The report also positions the insurance sector as a critical driver of financial inclusion. Analysts note that the surge in digital premiums reflects the sector’s adaptation to changing consumer behavior, while the strong growth in takaful indicates rising demand for Shariah-compliant risk solutions.

Pakistan first introduced family and general takaful regulations in the mid-2000s to meet demand from religiously observant consumers. The segment has since evolved into one of the fastest-growing components of the market, mirroring regional trends in Malaysia, Indonesia, and the Gulf states.

Despite strong growth, challenges remain. Penetration of insurance in Pakistan is still among the lowest in South Asia, averaging less than 1% of GDP compared to 4% in India and nearly 6% in Sri Lanka. SECP officials have repeatedly emphasized that boosting coverage, particularly in rural and low-income areas, will be critical to achieving broader financial inclusion goals.

The Insurance Industry Statistics 2024 compiles data submitted by licensed insurers in standardized formats, consistent with previous editions. SECP said the report is intended to serve as a reference for policymakers, regulators, industry participants, and researchers.

The full report has been published on SECP’s official website and will be circulated among stakeholders as part of its ongoing efforts to enhance transparency and data-driven policy development in the financial sector.