(MENAFNEditorial)
The Pakistani insurance sector remains one of the more challenging markets we monitor. Widespread poverty has traditionally limited penetration of insurance coverage to just the highest income earners reducing the opportunities for multi-nationals to enter the market. Meanwhile the proliferation of smaller and medium-sized players particularly in the non-life segment has further deterred foreign companies from entering a congested low-margin environment. However recent changes to Pakistan's insurance regulatory framework are gradually opening up new areas of the market.
In 2015 new Takaful regulations passed in May 2014 are expected to boost insurance penetration with EFU the first of several conventional insurance firms expected to begin offering Sharia-compliant products to customers. Meanwhile the growth of the micro-insurance market in 2015 is expected to increase penetration of insurance coverage among low-income earners. With both Takaful and micro-insurance currently focused on the provision of life rather than non-life products we expected to see further divergence in the growth paths of the two markets this year. Life insurance premiums are forecast to grow by 6.6% in 2015m which is about twice as fast as non-life premiums.
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We expect this trend to remain in place over the course of our 2015-2019 period. Growth in household spending will support demand for life insurance coverage while in the non-life segment we expect the continued security challenges to limit the underwriting activities of all but the largest insurance providers. That said we expect to see a slightly faster rate of growth in the non-life reinsurance sector as the heightened threat from terrorist groups increases the need for risk transfer by local insurers. There is also room for expansion in the health insurance segment which is another area being increasingly targeted by providers of micro-insurance coverage.
As mentioned growing security challenges as...
The Pakistan Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments key growth drivers and risk management projections including the macroeconomic situation government policy regulatory environment and the level of development and potential for growth broken down by line. Leading insurers are profiled covering premiums products and services and competitive positioning.
BMI's Pakistan Insurance Report provides professionals consultancies government departments regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Pakistani insurance industry.
Key Benefits
* Benchmark BMI's independent insurance industry forecasts for Pakistan to test other views - a key input for successful budgeting and strategic business planning in Pakistan's insurance market.
* Target business opportunities and risks in Pakistan through our reviews of latest industry trends regulatory changes and major deals investments and macroeconomic developments.
* Exploit latest competitive intelligence on your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts and views covering the Life and Non-Life segments the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the insurance sector and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
* Life/non-life Premiums: Total premium growth (USDmn) premium growth (% y-o-y) penetration (% of GDP) density (USD per capita) for Life and Non-Life sectors claims reinsurance and assets and liabilities.
* Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor transport property personal accident health general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide an indices of highest to lowest appeal to investors with each position explained.
Company Profiles*
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
* Population: Male/female by age group active/pensionable/youth population % of total urban/rural population % of total.
* Freight: Tonnage – air freight rail freight road freight inland waterway.
* Motor: Fleet size by type of vehicle % change y-o-y.
* Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position business strategies and investment potential of the leading insurance companies.
Sources
The insurance Reports draw on an extensive network of primary sources such as multilateral organisations government departments industry associations chambers and company reports.
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