Overall, the insurance industry posted a historic high in premiums last year, reaching USD 936 million.
Regulatory changes had a significant impact on the market, including new provisions in the Law "On Insurance Activities," which made charter capital variable, Presidential Decree No. 108, and Council of Ministers Resolution No. 9 on intermediaries.
The July 2025 storm also contributed, significantly increasing losses in Motor Hull. The portfolio structure demonstrated clear growth drivers such as voluntary health insurance (VHI), which grew by 20%, and funded pensions, while travel insurance and some banking channels declined. Digitalization emerged as a key trend: the share of electronic contracts increased to 3.6%.
Experts are paying particular attention to the electric vehicle segment, where 44.5% of the fleet (22,050 vehicles) are insured. However, a twofold increase in the frequency of claims and the outpacing growth of claims over premiums in Motor Hull raise alarming signs for market stability, requiring attention of underwriters. Based on statistical analysis, the Association predicts an inevitable increase in electric vehicle insurance rates, which should prepare the market and industry for the coming changes.
Particular attention in 2025 is being paid to the life insurance segment, which accounts for 11% of the total market. Current statistics reflect a decline in the corporate segment: the number of insured individuals remains extremely low compared to the 4.2 million economically active population, and the number of corporate life insurance contracts fell from 543 to 154 over the year. This negative trend has become the main obstacle to the market reaching the milestone of USD 1 billion in GWP. It is noted that while the Russian, Azerbaijani, and Turkish markets have experienced explosive growth in this segment over the past 30 years, the Belarusian market is currently demonstrating a reverse trend.
The opposite situation is observed in voluntary health insurance (VHI), which has reached a historic high of 818,000 insured individuals. However, behind this apparent success lies a problem with profitability: the payout rate in VHI reached 81.4%, and the frequency of claims per contract increased to 4.75. Without portfolio expansion and adjustments to terms, this type of insurance risks becoming critically unprofitable for companies.
Summarizing the industry's performance, we can note a transformation of sales channels, a shift toward packaged solutions, and growth in the comprehensive insurance segment, while life insurance is weakening as a market driver. An analysis of the 2025 results confirms that, despite the development of voluntary insurance, its coverage remains insufficient. Company representatives note losses in the corporate sector: the number of new sales has fallen by 70%. The industry faces fierce competition from bank deposits, the yield on which significantly exceeds the capabilities of insurers, who are limited in their choice of investment instruments.
The supplementary pension insurance program has not yet reached the expected scale: with a potential of 3 million people, only 75,000 contracts have been concluded. Experience with the program implementation has shown that the key barrier is low financial literacy and public mistrust, associated with negative experiences with deposit depreciation in the past.
The following are identified as key development vectors for the near future:
• Imputed insurance: actively implement this mechanism to expand market coverage.
• Digitalization: developing electronic services as the main channel for attracting young people, while maintaining an agent network for working with the older population.
• Comprehensiveness: scaling up products that combine home, property, and liability insurance.
• Public sector: developing mechanisms for voluntary property and vehicle insurance for public organizations, according to the BAS Insurance Bulletin.
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