The life industry in Pakistan has a turbulent history. Before 1972. It was based on free competition, and there were 42 companies transacting life insurance business. In 1972 the insurance industry was nationalized and, as a consequence, State Life was created, which held a monopoly until 1992. After changes in the law in 1990, private local and foreign companies were allowed to enter the life insurance market.

At present there are five life insurance companies in the industry:

• State Life Insurance--with more than 90% share of the market
• EFU
• Alico
• Metropolitan
• Commercial Union

Commercial union was granted permission to transact life insurance business in 1995, and commenced operations in June 1996. It is the newest company in the industry.

HISTORY OF COMMERCIAL UNION

Commercial Union is one of the world's leading insurance companies, providing a comprehensive service to customers for all forms of general insurance and life assurance business. It was founded in the United Kingdom...