Insurance Sector Assets Surge to Rs. 3.554 Trillion in 2024

The assets of the insurance sector surged significantly, rising from Rs. 2.9 trillion in 2023 to Rs. 3.554 trillion in 2024, driven by the staggering growth of its takaful segment. The sector’s gross premiums grew by 7% year-on-year, reaching Rs. 677 billion compared to Rs. 631 billion in the preceding year. The takaful sector continued its robust expansion, with family takaful contributions increasing by 37% and general takaful by 24%, bringing the combined premium volume close to Rs. 100 billion, according to the Insurance Industry Statistics for the Year 2024 released by the Securities and Exchange Commission of Pakistan (SECP). Addressing members of the media at the launch of the report, Commissioner Insurance, Mr. Mujtaba Ahmad Lodhi, emphasized the growing role of insurance in Pakistan’s economic development and financial stability. He noted that insurance serves as a vital pillar of the financial system by providing risk protection, mobilizing long-term funds, and supporting the deepening of capital markets. Highlighting recent sectoral trends, the Commissioner pointed to encouraging signs of economic recovery, including a 25% increase in private sector life premiums, a threefold rise in premiums through digital channels, and the rapid growth of the takaful sector. He further outlined SECP’s strategic priorities for sustaining this momentum, including the implementation of a five-year sectoral development plan, collaboration with provincial governments on agricultural and disaster risk insurance, and partnerships with international institutions such as the UNDP and the Asian Development Bank. Other focus areas include reforms to enable mandatory insurance coverages, the promotion of innovation and digital financial inclusion, and the phased adoption of international standards such as IFRS 17 and the Risk-Based Capital regime. Consistent with previous editions, the Insurance Industry Statistics 2024 are compiled from data submitted by insurance companies in prescribed formats.