KAZAKHSTAN: Voluntary health insurance increased by 7% y-o-y in 1H2020

27 August 2020 —
In 1H2020, GWP under voluntary health insurance amounted to KZT 22.2 billon (~EUR 49 million*), which is 7% more y-o-y. The share of the class in voluntary personal insurance reached 22.1%. At the same time, paid claims under voluntary health insurance decreased by 15.2%, to KZT 10.3 billion, Allinsurance.kz reports.

HALYK was the leader in voluntary personal insurance - the company generated over a third of all segment's premiums. TOP-3 companies in 1H2020 accounted for 68.6% of total segment's GWP. In terms of paid claims under voluntary health insurance, HALYK was also leading (37.7%).

According to the National Bank, in 1H2020 the assets of insurance companies increased to KZT 1.38 trillion, equity - to KZT 614 billion, which is a good indicator, given the current economic crisis. However, it is worth noting that total premium collection in the second quarter of 2020 decreased significantly - by 13% compared to 2Q2019.

Experts point out that due to the pandemic the market is shrinking, but at the same time, new areas have been developed that can significantly simplify insurance for customers and work of insurers. The decline in insurance is mostly associated with a decrease in interest and solvency of the population and enterprises. At the end of the year experts do not expect growth. It is possible that compulsory insurance types will remain at the level of 2019, but voluntary insurance will most probably drop.

* for the following exchange rate:
EUR 1 = KZT 452.52 (as of 01.07.2020)