A man has to go through joys and sorrows through out his life,he has to face different advarsities either in the from of financial,mental or physical losses.He must secure himself/herself and also his possession(family and property).So he must rescue,secure his future.An insurance is a contract through which one can buy different policies and shared his all losses through consideration called premium.

Soon after independence all the foreign/non-Muslim insurance companies closed their business from Pakistan.Due to this shifting Pakistan faced many challenges in the development of Insurance business.Now there was the need of this business.Pakistan government announced Pakistan Insurance Corporation act of 1952 with a shared capital of 10 million( one crore),out of this 20 thousand shares have been sold at market at rate of 200 rupees per share and other shares were sold time by time.Currently more than 28 insurance companies are working in Pakistan with total capital of 258 billion rupees.However,per capita insurance in Pakistan is just 20-25 rupees as compared to U.S.A where it is 20000 and in U.K it is 15000.So from these facts it is judged that there is still need of development of Insurance business in Pakistan.Some factors always suppressed the phenomena of this business,some of them are given below:

1.Poverty
2.Illiteracy
3.Lack of insured people
4.lack of economic development
5.low resources
6.Mismanagement of insurance sector
7.Weak macro economic conditions