KAZAKHSTAN: motor insurance and life insurance increased last year despite the difficult pandemic situation

17 March 2021 —
The pandemic had a positive impact on the results of the Kazakhstani motor insurance market - Motor Hull increased by 7% to KZT 28 billion (~EUR 54.18 million*), and MTPL - by 6% to KZT 81.1 billion (~EUR 156.93 million*), said Marina SHIPOVALOVA, General Director, INTERCONSULT Info, insurance consultant, for Allinsurance.kz.

As Marina SHIPOVALOVA explained, Motor Hull growth was supported by an increase in demand for new cars in early 2020. The quarantine measures, which severely limited movement of vehicles, had a positive effect on the loss ratio of motor insurance - the loss ratio of Motor Hull decreased by 2.5%, and for MTPL insurers - by 3%. Thus, motor insurers expanded their incomes both through GWP increase and loss reduction.

Also, the General Director of INTERCONSULT Info emphasized that in 2020 the share of life insurance in the market portfolio increased to 40.3%, and voluntary life insurance was the growth driver (+27%, to KZT 97.6 billion). This insurance class became the second largest in terms of GPW collected after voluntary property insurance, she noted. GWP of pension annuity insurance increased by only 9% to KZT 71.4 billion (vs an increase of 132% in previous years), since quarantine measures restricted activities of agents (the main sales channel for these products), but despite this, life insurance sector had good results.

However, some segments ended the year in a red zone - health insurance GWP in 2020 dropped by 7% to KZT 31.7 billion as due to the transition to remote work. This type of insurance has become a non-priority for most employers. Paid claims and loss ratio in this segment also decreased - by 11% and 3%, respectively. Travel insurance was seriously affected in 2020 - GWP of voluntary travel insurance due to travel restrictions dropped by 54%, while GWP of compulsory travel insurance decreased by 50%.

* at the following exchange rate:

EUR 1 = KZT 516.79 (as of 01.01.2021)