Kazakhstan people have become insure their life almost 2 times more | FinReview
26 November 2019

Kazakhstan people have become insure their life almost 2 times more

The volume of insurance premiums collected since the beginning of 2019 for life insurance amounted to 103.6 billion tenge, which is 82.2% more than for the same period last year.

The insurance sector in Kazakhstan is represented by 27 insurance organizations, of which 20 are general insurance and 7 are life insurance. Their total assets for the first nine months of 2019 amounted to 1.15 trillion tenge, or 1.86% of GDP. Moreover, in comparison with the same period in 2018, the share of GDP remained at the same level.

Actual solvency margin, that is, the ratio of assets to liabilities of insurance companies increased by 9.7% from 350.6 billion tenge to 384.5 billion tenge.

This year, the insurance market of Kazakhstan showed stable growth, which over the past five years was observed only in 2016. So, for the nine months of 2019, the volume of insurance premiums increased by 32.1% and amounted to almost 379 billion tenge. This dynamics is associated with an increase in the volume of annuity insurance by 2.3 times, cargo insurance by 2.2 times, voluntary accident insurance by 61% and life insurance by 50.6%. Nevertheless, the intensive growth rate of these types of insurance is slowing down due to a 3-fold decrease in the volume of civil liability insurance, compulsory accident insurance of employees by 17% and insurance against other financial losses by 10%.

The structure of premium collection by type of insurance this year remained similar to last year – the bulk of the money came from property insurance (18.8%), compulsory civil liability insurance of vehicle owners (15%), life insurance (14%). Moreover, over the past five years, the structure has not changed much.

The total profit of insurance companies amounted to 62.4 billion tenge, with 15.7 billion tenge accounted for life insurance companies. In terms of attracted profit, JSC Eurasia IC is the leader, which earned 25.5 billion tenge. The TOP-3 companies also include NOMAD LIFE and Halyk-Life life insurance companies, which earned 5.8 billion tenge and 4.4 billion tenge, respectively.

That is, as statistics show, the resources of insurance companies can improve dynamics in the industry market, thereby giving insurance a new level. Of course, this will have a positive impact on the country’s economy, from the creation of new jobs to stimulating GDP growth.