This made it possible to increase participation of the insurance sector in the country's GDP over the past three years from 1.7% to 2.22%, although insurance penetration is still at a low level, said Maria KHADZHIEVA, Deputy Chairman of the Board of the Commission of the Agency of the Republic of Kazakhstan for Regulation and Development of the financial market, Allinsurance.kz writes with reference to dknews.kz.
GWP increased by 69.1% and reached KZT 642 billion. The number of insurance contracts increased by 1.5 times to 10.3 million units, of which 86% were concluded with individuals. Total amount of insurance paid claims increased by 23%.
The main growth driver is voluntary insurance. Premiums for voluntary insurance only for 10 months of 2022 amounted to KZT 502 billion, while for compulsory insurance - KZT 140 billion. Voluntary property insurance shows the greatest growth, in particular motor insurance grew by 44%. The increase in Motor Hull sales activity is directly related to the implementation of government car loan programs.
Speaking about the dynamics, Maria KHADZHIEVA noted that over the past three years, life insurance has outpaced general insurance in terms of development. For three years, life insurance premiums increased by 2.2 times and amounted to KZT 237 billion, which was due to the measures taken to introduce tax incentives for individual income tax for policyholders, reduce the cost of a pension annuity by 40%, and introduce a deferred pension annuity.
It is noted that this year the structure of reinsurance of accepted risks has changed significantly. Insurers began to reinsure risks within Kazakhstan more. GWP reinsured within the country increased by 1.7 times, and inward reinsurance from non-residents also increased by 23.7%. This testifies to the growing confidence in the Kazakhstani insurance market and the increased market capacity.
To date, 27 insurance organizations operate in the insurance market of Kazakhstan, 9 of which are life insurance companies. Over the past three years, the market structure has not undergone significant changes. The main trends were the entry of new life insurance companies into the market and consolidation of general insurance companies, the Deputy Chairman of the Board added.
*EUR 1 = KZT 459.52 (01.11.2022)
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