Pakistan Insurers Pay Rs548 Billion as Claims Cross 1 Million

Pakistan insurance claims reached around Rs548 billion in 2025 as insurers settled more than one million claims across life, health, motor, accident, fire and property categories.

KARACHI: Pakistan's insurance industry cut checks worth roughly Rs548 billion last year, settling more than one million claims across motor, accident, health, fire and property lines. The Securities and Exchange Commission of Pakistan released the numbers Friday in its Insurance Industry Statistics Report 2025, and the split between the two halves of the industry tells its own story.

Life insurers paid out Rs410 billion of that total, while non-life insurers covered approximately Rs138 billion. Life claims climbed from Rs380 billion in 2024, and within that figure, death claims alone rose from Rs33 billion to around Rs37 billion. Insurers settled more than 33,000 of those death claims during the year each one a payout triggered by a policyholder's passing, not a policy lapsing or a claim denial.

Non-Life Claims Jump Nearly 50%

The smaller half of the industry saw the sharper jump. Non-life claim payments rose from Rs92 billion to roughly Rs138 billion, an increase of exactly the kind regulators watch closely when it happens in a single year. Breaking down the volume: non-life insurers settled over 720,000 accident and health claims, more than 282,000 motor claims, and around 11,000 fire and property claims. Accident and health claims dominate the count, but motor claims the fender-benders, the theft reports, the total losses still crossed a quarter-million individually processed files.

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SECP Chairman Dr Kabir Sidhu tied the disclosure directly to industry oversight. He said claims settlement functions as a key measure of insurers' performance, adding that publishing both claim amounts and claim counts will strengthen accountability, build policyholders' trust and support sustainable growth. Sidhu also confirmed i is running a comprehensive review of insurers' claims-handling processes, including a direct analysis of claims data, a review that goes beyond the headline totals and into how insurers actually process individual files. Separately, SECP has placed the draft Market Conduct Rules for Insurers, 2026, under public consultation, a step that typically precedes new binding requirements on how insurers deal with policyholders.

The Industry Itself Is Growing Fast

None of this is happening in a shrinking market. Total industry assets grew more than 9% to Rs4.1 trillion, and gross written premium the raw revenue insurers collect before claims and expenses — rose 15% to Rs778 billion. Life insurance premiums grew 14%; non-life premiums grew 16%, meaning the smaller segment of the industry is also the faster-growing one on the revenue side, not just the claims side.

Health and Motor Products Are Pulling Premium Growth

Zoom into specific product lines and the growth gets more dramatic. Among private life insurers, health insurance premiums jumped 49% to Rs30.4 billion, while term life premiums rose about 37% to more than Rs19.7 billion. On the non-life side, motor premiums grew around 35% to more than Rs78.5 billion, and accident and health premiums rose approximately 42% to more than Rs35.7 billion. Four product categories, four growth rates all sitting well above the industry's overall 15% premium growth, a sign that health and motor coverage are pulling disproportionate weight in this cycle.

Digital Channels and Takaful Gain Ground

Digital distribution is scaling fast off a small base: premiums generated through digital channels rose 71% to around Rs6.8 billion. Takaful, the Sharia-compliant insurance model, now accounts for 16% of the life insurance market and 15% of the non-life market, a meaningful foothold in an industry still dominated by conventional products.

SECP has published the full report on its website, giving policyholders and analysts direct access to the underlying data behind Friday's numbers.