Insurance industry payments against claims in 2021 soar to Rs189bn from Rs170bn in 2020

ISLAMABAD: The insurance industry (life/ non-life insurance companies) has paid claims of Rs189 billion to the general public during 2021 as compared to Rs. 170 billion paid in 2020, reflecting an increase of Rs 19 billion.

The Securities and Exchange Commission of Pakistan (SECP) has released latest insurance industry statistics for the calendar year 2021.

The insurance industry has 41 active operators consisting of 30 non-life insurers/ general takaful operators, 10 life insurers/ family takaful operators and one re-insurer.

Out of the total gross premium of individual life insurance industry for the years 2021, 56% of the gross premium pertained to the Punjab followed by Sindh at 29%.

On the other hand, our of the total gross premium of non-life industry for the years 2021, 56% of the gross premium pertained to the province of Sindh followed by Punjab at 35% and Federal 7%.

The statistics provide a comprehensive view of the insurance industry to the relevant stakeholders in a holistic manner which will help them in making informed policy decisions related to the insurance industry, through presentation of consolidated insurance industry information.

During the year 2021, insurance industry has written gross annual premium of Rs. 432 billion as compared to Rs. 355 billion in 2020, recording year-on-year growth of 21.7%. Claims paid during 2021 were Rs. 189 billion (2020: Rs. 170 billion), out of which Rs.136 billion worth of claims were paid by the life insurance companies and remaining Rs. 53 billion paid by the non-life insurance companies.

Within the category of gross written premium of life insurance and family window Takaful operators, the product wise distribution shows 83% of the premium pertained to unit linked polices in private sector, followed by health-related policies at 8%. In public sector, 68% of the premium comes from participating policies followed by health-related policies at 23 percent.

SECP Commissioner Sadia Khan said that Pakistan’s insurance market holds enormous untapped potential for growth. She added that the sector is rife with opportunities, for both local and foreign investors, considering the size of population in Pakistan and the growing demand for affordable & innovative insurance solutions.

Copyright Business Recorder, 2022