Islamabad October 1 2022: Insurance industry penetration in Pakistan measured at 0.91 percent with insurance density of Rs 2,081 or USD 12.41 in 2021, according to data published by SECP.
The insurance industry has gross premium of Rs 432 billion with total number of 10.1 million polices. Gross premium witnessed increase of 22 percent when compared with gross premium of Rs 355 billion in 2020.
Insurance industry has 41 operators – 28 Non-life Insurers, 8 Life Insurers, 2 General Takaful Operators, 2 Family Takaful Operators and 1 Reinsurer.
Insurance industry paid claims of Rs 189 billion in 2021 when compared with claims of Rs 170 billion in 2020.
In Life Insurance, sales force agents bring 99 percent of public sector premium while forms 32 percent of private sector premium. Banca Channel bring 1 percent of premium in public sector premium and 56 percent of private sector premium.
Premium in the categories of accident, heath and critical illness is 16% (2020: 11%) of total premium. In individual life category, 56% of total premium comes from Punjab. 76% new policies written in the premium band of ‘0-50,000’ and 18% of new policies premium fall in the premium band of ‘1,000,000 and above’.
Gross Claims of life insurance industry stood at Rs 189 billion in the year 2021 compared to Rs 132 billion in 2020. In private sector and public sector, highest claims pertain to the category of Individual Claims – Surrenders at 61% and 31%. Total gross claims against death category were Rs 32 billion (2020: Rs 22 billion).
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%.
In terms of Gross Written Premium (GWP), Pakistan non-life insurance industry has a total size of Rs 140 billion in the year 2021 compared to Rs 122 billion last year, exhibiting growth of 14.55%. Premium written in the category of Fire and property damage was highest at 27% of total premium amounting to Rs 38 billion (2020: Rs 32 billion followed by motor insurance at 24% [Rs 33 billion (2020: Rs 29 billion)] and Engineering at 15% [Rs 20 billion (2020: Rs 17 billion)]. Dedicated personal lines of non-life insurance business (Home & Household contents, individual health & travel and travel) constitute only 1% of the total premium in 2021.
In Non-Life Insurance, sales force agents bring 49 percent of total premium while Direct Channels bring 33 percent of total premium.
Premium from digital channels constitute 0.27% (2020: 0.30%) of total premium.
Highest no. clients of non-life insurance companies are from individual category at 582,144 (2020: 468,755). Individual category of clients also hold maximum no. of policies. However, when the same is viewed in the context of polices / client category, category of listed companies tops the list at 29 (2020: 37) followed by unlisted public companies at 23 (2020: 20).
Total policy count as at 2021 stood at 2.1 million polices (2020: 1.9 million) having 86% (2020:86%) of the total policies written in the premium band of “0 – Rs 50,000” being highest in number when compared with polices written in other premium bands. Whereas polices falling in the premium band of “Rs 100,000,000 and above“ being only 0.05% (2020: 0.05%) of total polices issued were a source of 29% (2020: 26%) of the total premium being highest when compared with other premium bands.
Claims paid by non-life insurance industry stood at Rs 53 billion in the year 2021 compared to Rs 52 billion last year. Category of Motor insurance witnessed highest claims paid at 33% [Rs 17 billion (2020: Rs 16.7 billion)] followed by Fire and property damage at 24% [Rs 13 billion (2020: Rs 10 billion)].
Out 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%.