How to register an insurance company in Pakistan?

How to register an insurance company in Pakistan?


Registering an insurance company in Pakistan is a complex and regulated process that involves several steps and requirements. This guide aims to provide a detailed overview of the registration process, definitions of key terms, examples, case studies, and a conclusion to help aspiring entrepreneurs understand the intricacies involved.


Insurance Company: An insurance company is a financial institution that provides risk management and financial protection against specified events in exchange for a premium. It operates under specific regulations and guidelines set by the insurance regulatory authority of the country.

Securities and Exchange Commission of Pakistan (SECP): The SECP is the regulatory body in Pakistan responsible for overseeing and regulating the insurance industry. It ensures compliance with laws, regulations, and guidelines to protect policyholders’ interests.


Feasibility Study: Before initiating the registration process, conduct a comprehensive feasibility study to assess the market potential, competition, target audience, financial projections, and potential challenges. This study will help you make an informed decision about the viability of starting an insurance company.

Capital Requirements: Determine the minimum capital requirements set by the SECP for starting an insurance company. The capital requirement varies based on the type of insurance company, such as life insurance, general insurance, or reinsurance.

Company Formation: Register a company with the Securities and Exchange Commission of Pakistan (SECP) by following the prescribed procedures. This involves selecting a unique company name, preparing legal documents, submitting the application, and paying the registration fee.

Board of Directors: Appoint a board of directors comprising individuals with diverse skills and expertise in insurance, finance, and management. Ensure that the board members meet the eligibility criteria specified by the SECP.

Licensing Process: Apply for an insurance license from the SECP. The application must include detailed information about the company, its directors, business plan, financial projections, risk management framework, and compliance procedures. The SECP will review the application and conduct due diligence before granting the license.

Regulatory Compliance: Develop robust policies and procedures to comply with the SECP’s regulations and guidelines. This includes maintaining proper accounting records, submitting regular financial statements, complying with solvency requirements, and ensuring fair treatment of policyholders.


Adam Insurance Company: Adam Insurance Company, established in 2019, went through the registration process in Pakistan to offer general insurance services. They successfully obtained the required license from the SECP by demonstrating their financial stability, risk management practices, and commitment to compliance.

SafeLife Insurance: SafeLife Insurance, a prominent life insurance company in Pakistan, underwent the registration process in 2015. They meticulously prepared their business plan, highlighting the unique selling points and market potential, and received the necessary license to operate.

Case Studies:

XYZ Insurance: XYZ Insurance faced challenges during the registration process due to inadequate capital reserves. However, they collaborated with investors and strategic partners to meet the capital requirements. This case emphasizes the importance of financial planning and resource mobilization.

ABC Insurance: ABC Insurance had a well-prepared business plan and a robust compliance framework. This enabled them to receive the license swiftly and gain a competitive advantage in the market. This case highlights the significance of meticulous planning and adherence to regulatory requirements.


Registering an insurance company in Pakistan requires careful planning, compliance with regulatory guidelines, and a thorough understanding of the industry. Entrepreneurs aspiring to start an insurance company should conduct a feasibility study, meet the capital requirements, complete the company formation process, obtain the necessary licenses, and ensure compliance with regulatory obligations. Real-life examples and case studies demonstrate the challenges and success stories in the registration process. By following the prescribed steps and fulfilling the requirements, entrepreneurs can establish a thriving insurance company in Pakistan.