The COVID-19 pandemic has led to muted premium performance in 2020 in both the life and non-life sectors of the insurance industry in Pakistan, says the central bank, the State Bank of Pakistan (SBP), in its 2020 financial stability review.
Gross premiums in the life insurance sector increased by 2.9% to PKR201bn ($1.25bn) in 2020. There was a decline in sales of new individual life policies (first-year and single premiums) owing to the imposition of the COVID-19-related lockdown. Group business, however, grew.
In the non-life sector, net premiums declined by a small margin of PKR2bn (or 4%) to PKR47bn for