SOURCE: MarketResearch.com

MarketResearch.com

September 05, 2012 04:07 ET

Pakistan's Positive Economic Outlook Good Sign for Life Insurance Market

ROCKVILLE, MD--(Marketwire - Sep 5, 2012) - MarketResearch.com has announced the addition of "Life Insurance in Pakistan, Key Trends and Opportunities to 2016," to their collection of Pakistan market reports. For more information, visit http://www.marketresearch.com/redirect.asp?progid=67618&productid=7096457

Pakistan's life insurance segment recorded strong levels of growth during the review period (2007-2011). The segment recorded a CAGR of 23.8% during the review period. Such growth was primarily driven by the nation's positive economic outlook, increasing levels of consumer awareness with regards to the benefits of life insurance products, the availability of a range of coverage and the development of new distribution channels such as bancassurance, online and telemarketing. The country's GDP grew at a CAGR of 20.1% during the review period. Pakistan's economic growth is anticipated to attract higher foreign capital inflows while supporting business and consumer confidence over the forecast period (2012-2016). This will subsequently have a positive impact on the country's life insurance segment which is consequently expected to grow registering a CAGR of 17.5%. The number of life insurance policies sold will increase from 15.3 million in 2011 to 27.8 million in 2016, after registering a CAGR of 12.6% over the forecast period.

The individual life category recorded a strong growth during the review period. The category grew at a CAGR of 27.8% during the review period. Such growth was primarily derived from increasing levels of acceptance among consumers with regards to marketing strategies adopted by insurers in order to encourage purchases by individual clients. Consequently, the rising demand for individual unit-linked products also contributed to the overall growth of the individual life category. For example, individual unit-linked products recorded a CAGR of 30.6% during the review period. Since the individual life category accounted for 86.7% of the segment's overall written premiums in 2011, the stable performance of the category ensures the growth of the segment. Overall, the segment recorded a CAGR of 23.8%.

The Pakistani government in collaboration with the Securities and Exchange Commission Pakistan (SECP) rolled out the VPS in 2003, primarily for employees in the private sector and self-employed individuals. Due to the lack of adequate social security systems, the VPS scheme emerged as a way for individuals to secure their avail regular income post-retirement. Under this scheme, individuals contribute a part of their income as a pension contribution. The increasing level of acceptance of VPS among the consumers supported the growth of pension products in the Pakistani life insurance segment during the review period. The written premium from pension products grew at a CAGR of 15.7% during the review period.

For more information, visit http://www.marketresearch.com/redirect.asp?progid=67618&productid=7096457

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