KAZAKHSTAN, 2011: The market entered "the first billion euro" area

10 February 2012 — Vlad BOLDIJAR
KAZAKHSTAN, 2011: The market entered
xcom_statisticIn 2011, the gross premiums written by the 38 insurance companies in Kazakhstan increased in local currency by 29.32%, reaching KZT 198.50 billion (EUR 1.04 billion), compared to KZT 153.50 billion (EUR 786.24 million) in 2010. Claims paid by insurers amounted to KZT 46.14 billion (EUR 241 million) according to official data published by the Supervisory Commission of Financial Markets.

In 2011, underwritings on life insurance increased by 63.4% compared to previous year, reaching KZT 30.5 billion (almost EUR 159 million). According to Marina SHIPOVALOVA, Chief Editor, Rynok Strakhovaniya Magazine, quoted by caspionet.kz, "annuity insurance is the leader of growth. Moreover, annuity insurance is increasing mainly due to pension contributions. In monetary terms the growth was also high and health insurance was quite high as well".

Local experts noted another market trend where despite the growth of premiums on the third party liability insurance of vehicle owners the paid claims have not increased significantly. They say that this shows that insurers are reluctant to fulfill their obligations before clients: "Unprofitability dropped in 2011 because the increase in premiums was significant. Premiums have grown for many reasons. The administrative punishment for the lack of policy was toughened. Many drivers do not risk driving without an insurance policy. Besides, charges increase from every year", say Talgat USSENOV, Chairman, CENTRAS Insurance, quoted by caspionet.kz.

Who are the market leaders?

HALYK-Kazakhinstrakh achieved last year a market share of 14.5%, and thus consolidated their position as the number 1 in the Kazakh non-life insurance market (gross written premiums of KZT 126.9 billion). Founded in 1995, the company is a part of financial HALYK Group and activate on non-life insurance segment. The Financial Group HALYK is a universal regional financial services group, which offers a wide range of services (banking, pensions, life and general insurance, leasing, brokerage and asset management) in retail, corporate and SME sectors.

On life insurance segment, the absolute market leader is "Life Insurance Company State Annuity Company" (LIC SAC) - 21.4% market share. In 2005 by Kazakhstan's government decree for further successful implementation of the Insurance Market Development Program of 2004-2006, and the 2005-2007 Program of further extension of social reforms in the country there was created JSC "Life-insurance Company State Annuity Company". Administration of complete holding of shares was given to the Ministry of Labor and Social Protection of Kazakhstan. Creation of LIC SAC is associated with reforming of national insurance industry directed to strengthening of the role of insurance as an efficient mechanism of defending the interests of citizens and economic entities from financial, social and other risks and a reliable source of long-term domestic investment.

Access www.xprimm.com and download the FY2011 Kazakh insurance market statistics.

Market indicators (in EUR and KZT):
  • GWP
  • Claims 
  • Growth rates
  • Portfolio
Total, life and non-life market rankings (in EUR and KZT):
  • GWP
  • Claims 
  • Growth rates
  • Market shares

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