Insurance in Pakistan is growing fast but still reaches only a small share of people. Insurers wrote Rs 778 billion in premiums in 2025, up 15%, and settled more than 1 million claims worth Rs 548 billion, according to the SECP. This guide explains how insurance works, the main types of insurance for financial security, takaful, how the industry is regulated and how to decide what cover you need.
Last updated: 31 October 2026 by Ahmed.
Insurance in Pakistan in Numbers (2025)
| Measure | Figure |
|---|---|
| Gross written premium | Rs 778 billion (up 15%) |
| Claims paid | About Rs 548 billion (life Rs 410 billion, non-life Rs 138 billion) |
| Number of claims | More than 1 million |
| Industry assets | Rs 4.1 trillion |
| Takaful market share | About 16% of life and 15% of non-life |
How Insurance Works
You pay a premium to an insurance company. In return, it promises to pay you, or your family, a set amount if a covered event happens, such as death, illness, an accident or theft. Insurers pool premiums from many people, so the few who suffer a loss can be paid from the pool. Insurance companies in Pakistan are licensed and regulated by the SECP.
Types of Insurance for Financial Security
| Type | What it protects | Read more |
|---|---|---|
| Life insurance | Your family’s income if you die | Term and savings plans below |
| Health insurance | Hospital and medical bills | Health insurance in Pakistan |
| Car insurance | Damage, theft and liability for your car | Car insurance in Pakistan |
| Home and property insurance | Fire, flood and theft at your home or shop | Ask general insurers |
| Travel insurance | Medical emergencies and losses abroad | Often required for visas |
| Takaful | Shariah-compliant life, health and general cover | See below |
Life insurance: term vs savings plans
Term life insurance gives high cover for a low premium but pays nothing if you survive the term. Savings and investment-linked plans combine cover with a savings element but cost much more and lock your money in. See insurance as an investment tool.
Takaful: Islamic Insurance
Takaful is based on mutual help: participants contribute to a fund that pays claims, managed by a takaful operator for a fee or profit share. Pakistan has full takaful companies and takaful windows at conventional insurers, and takaful’s market share keeps rising.
Who Regulates Insurance in Pakistan?
- The SECP licenses and supervises insurers, takaful operators and agents.
- The Insurance Ombudsman handles complaints from policyholders free of charge.
- Rating agencies PACRA and VIS publish insurer financial strength ratings.
How Much Insurance Do You Need?
- Health cover for the whole family comes first.
- Term life cover if anyone depends on your income.
- Car insurance (third-party is required by law; comprehensive for valuable cars).
- Property cover for your home or business.
- Only then consider savings or investment-linked plans.
Our step-by-step guide on how to get insured in Pakistan and the list of insurance companies in Pakistan will help you compare options.
Frequently Asked Questions
What are the main types of insurance in Pakistan?
Life, health, car, home and property, travel insurance, and Shariah-compliant takaful versions of each.
Is insurance halal in Pakistan?
Many scholars consider conventional insurance problematic. Takaful is designed as a Shariah-compliant alternative and is regulated by the SECP.
How do I complain about an insurance company?
Complain to the company first, then to the Insurance Ombudsman or the SECP if the issue is not resolved.
This guide is for general information only and is not financial or tax advice. Rates, returns and rules change often, so confirm the latest figures with the official source before you invest.
Related Guides
- Insurance companies in Pakistan
- How to get insured in Pakistan
- Health insurance
- Car insurance
- Insurance as an investment tool
Sources
- APP: Insurers settle over 1 million claims worth Rs 548 billion in 2025 (SECP)
- Profit: SECP insurance industry statistics 2024
- SECP
Related guides: Read our guides on insurance companies in Pakistan, how to get insured in Pakistan, health insurance in Pakistan, car insurance in Pakistan and insurance as an investment tool.
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