This study examines the impact of Covid-19 outbreak on the returns of insurance industry in Pakistan. First this study has been employed event-study methodology (ESM) to examine the COVID-19 outbreak on ten listed insurance companies on Pakistan stock exchange (PSX). Secondly, to check the performance of this industry the ratio analysis has been performed for the period of 2014-2018. The findings of the study show that the COVID-19 outbreak has significant negative impact on the returns of insurance industry in Pakistan. Pakistan’s insurance stocks indicate significant difference in average abnormal returns and cumulative abnormal returns, which show a significant impact of the COVID-19 epidemic on insurance stock prices. The findings of the study suggest that investors should use such events as an investment opportunity for holding stocks for the future time period. Supervisor:- Dr. Ahmad Fraz