Insurance penetration less than 1pc of GDP: regulator

The insurance sector penetration has stagnated for years at less than one per cent of GDP, while several categories, including micro insurance, livestock insurance, and insurance against losses due to disaster and terrorism, were almost nonexistent. This was highlighted in a media engagement held by the Securities and Exchange Commission of Pakistan (SECP) on Tuesday. The gross premium in the country was only Rs553 billion, with Rs375bn only in the life insurance sector. There are 42 insurance companies, the majority (27 per cent) in the non-life sector. Of the remaining, 23pc are in fire protection, 17pc in motor vehicle tax, 13pc in marine and aviation, and 12pc in accidents and health. The SECP officials highlighted that insurance penetration in Pakistan was low mainly due to outdated laws, which, in many cases, have become irrelevant in current times. There is also a lack of implementation of laws, a lack of public awareness and even lack of regulatory oversight on insurance companies by the regulator.