How PACRA Evaluates Insurer Solvency & Risk

The Pakistan Credit Rating Agency (PACRA) evaluates the financial strength and stability of insurance companies in Pakistan through its Insurer Financial Strength (IFS) ratings. These ratings reflect an insurer’s ability to meet policyholder obligations, manage risks, and sustain operations in a competitive market. A higher PACRA rating indicates stronger financial stability, sound risk management practices, and greater policyholder protection, while lower ratings may highlight weaknesses in solvency or business sustainability. For policyholders and investors, PACRA ratings serve as a reliable benchmark to assess the credibility and trustworthiness of insurance providers in Pakistan’s growing financial sector.