"While Kazakhstan insurance market is small in terms of volume, it has grown rapidly, driven by the country's economic growth, improvements in the regulatory environment, and a greater demand for personal insurance", the agency noted.
However, in 2020, the market faces an unprecedented challenge due to the effects of the pandemic on country's economy. Kazakhstan is an oil-exporting country, and the current situation led to reduced demand for energy. GDP decline will impact premium collection, especially insurance commercial lines. Even though, the country tries to diversify the economy, "it continues to rely on gas and oil revenues, meaning that its economy has felt the negative impact of faltering negotiations between members of OPEC and Russia, and the COVID-19-related reduced demand for oil", the report said.