KAZAKHSTAN: from January to May the market grew by 38%, the main driver is voluntary personal insurance

8 July 2024 — Marina MAGNAVAL
From January to May, assets of the insurance sector of Kazakhstan grew by 2.3%, and at the end of May amounted to KZT 2.6 trillion (EUR 5.40 billion), mainly because of the voluntary reorganization of KazakhExport into an export credit agency.

As of June 1, 2024, securities had the largest share in the asset structure - 71.6% (KZT 1.8 trillion), allinsurance.kz writes.

Total equity of insurers at the end of May amounted to KZT 822 billion, which means a 9.1% decrease since the beginning of the year. Net profit in the insurance market since the beginning of 2024 amounted to KZT 59.8 billion.

From January to May the number of concluded insurance contracts increased by 37.1% y-o-y. The main growth comes from accident and life insurance contracts.

GWP from January to May reached KZT 545.0 billion (+38.5%)/~EUR 1.13 billion. The main growth driver is voluntary personal insurance.

In compulsory insurance, since the beginning of the year, insurers have collected KZT 101.6 billion, which is 33.4% more y-o-y. Voluntary personal insurance for 5 months of 2024 amounted to KZT 243.4 billion (+106.8%), the growth was mainly due to an increase in life insurance by 24.2% and pension annuity insurance by 34.3 times.

Voluntary property insurance since the beginning of this year amounted to KZT 200 billion, which is only 0.1% more y-o-y.

Paid claims from January to May amounted to KZT 118.5 billion (+21.0%). The increase is mainly due to an increase in compulsory insurance of employees against accidents during performance of their labor (official) duties and compulsory insurance of civil liability of vehicle owners.

As of June 1, 2024, the insurance sector of the Republic of Kazakhstan is represented by 24 insurance companies, 9 of which offer life insurance, the source writes.

*EUR 1= KZT 481.04 (as of May 31, 2024)