Life insurance - Pakistan | Statista Market Forecast

The Life insurance market market in Pakistan is expected to reach a projected market size (gross written premium) of US$6.80bn in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$27.75 in 2024.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 0.66%, leading to a market volume of US$7.03bn by 2029.
When comparing globally, the United States is predicted to generate the highest gross written premium of US$1.3tn in 2024.
Pakistan's life insurance market is experiencing a surge in demand due to increasing awareness about financial security and protection among the population.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in Pakistan has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Pakistan are increasingly recognizing the importance of financial security and long-term planning, leading to a growing demand for life insurance products. With rising disposable incomes and awareness about the benefits of life insurance, more individuals are opting for coverage to protect their families and assets in the event of unforeseen circumstances.

Trends in the market: One notable trend in the Pakistani life insurance market is the shift towards digital channels for purchasing policies and managing claims. Insurers are leveraging technology to enhance customer experience, streamline processes, and reach a wider audience. Additionally, there is a noticeable trend towards customization, with insurers offering tailored solutions to meet the diverse needs of customers.

Local special circumstances: In Pakistan, the regulatory environment plays a crucial role in shaping the life insurance market. Stringent regulations and oversight by the Securities and Exchange Commission of Pakistan (SECP) ensure consumer protection and financial stability within the industry. Moreover, cultural norms and family values emphasizing financial security contribute to the steady growth of life insurance in the country.

Underlying macroeconomic factors: The macroeconomic landscape in Pakistan, including factors such as GDP growth, inflation rates, and interest rates, influences the performance of the life insurance market. A stable economy and favorable demographic trends, such as a young and growing population, provide a conducive environment for the expansion of life insurance services. Additionally, government initiatives to promote insurance penetration and financial inclusion contribute to the overall growth of the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.