The assets of non-life insurers in 2024 increased by 5.2%, to KZT 1.4 trillion (~EUR 2.56 billion), which is 46% of insurance market assets, but only 1.04% of GDP. The role of the key 8 players has increased: their share in assets increased to 92% from 90% a year ago against the backdrop of the favorable impact of the scale effect.
The sector's liabilities increased by 16.7% to KZT 635 billion, mainly due to an increase in liabilities for losses incurred (+29.6%), liabilities for remaining part of insurance coverage (+17.7%).
In 2024, GWP in the segment increased by 3.0% to KZT 703 billion, driven by property insurance (+14%), influenced by an uptrend in mortgage loans and an increase in housing commissioning, as well as health insurance (+20%) amid an increase in employment and wages in Kazakhstan. At the same time, GWP in motor vehicle insurance (-12%) decreased significantly amid the introduction of flexible tariffs, as well as in professional liability insurance (-56%) against the background of a high base of the previous year.
Paid claims growth more than tripled premiums: their volume increased by 9.2% to KZT 232 billion (~EUR 0.42 billion). The drivers were MTPL/motor insurance (+29.9%) and health insurance (+20.0%). As a result, the ratio of paid claims to premiums increased to 33% from 31% a year ago.
Nevertheless, as noted by AFK analysts, the profit of non-life insurers at the end of 2024 increased significantly (+52%). The increase was contributed by income from investment activities against the backdrop of stock market growth and positive asset revaluation due to the weakening of the tenge in 2024 by 15.5%. As a result, profitability of the insurance market improved to 20.3% from 12.4% in 2023.
Demand for insurance products in 2024 demonstrated upward dynamics in all segments: premiums increased in compulsory insurance (+2.6%), voluntary personal insurance (+11.8%) and voluntary property insurance (+1.8%).
The growth in insurance penetration is also indicated by a significant increase in the number of concluded non-life insurance contracts: in 2024, they amounted to 10.5 million units (+694 thousand).
In terms of insurance entities, the bulk of non-life insurance remains with individuals (79% vs 83% a year earlier), but the share of legal entities continues to grow (to 21% from 17%). In terms of insurance segments, there is a decrease in the share of compulsory insurance (from 79% to 75%), and an increase in voluntary personal insurance (from 9% to 13%) and property insurance (from 11% to 12%).
Analysts believe that given the expected high economic activity, the positive impact of credit insurance (mortgage, motor) against the background of relatively low penetration of insurance products (insurance premiums per capita), the sector will continue to demonstrate steady growth, also due to expansion of the product line, general digitalization and interest in insurance products from legal entities and individuals, AFK added.
* 1 EUR = 546.47 KZT (December 31st, 2024)
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