KAZAKHSTAN: voluntary motor insurance increased 2.4 times in January-July

24 October 2023 — Marina MAGNAVAL
As of July 2023, there were 4.4 million passenger cars in Kazakhstan, which is 11.4% more y-o-y. At the same time, the motor insurance market has also grown noticeably: Motor Hull for January - July 2023 reached a record KZT 63.9 billion (~EUR 0.13 billion), which is 2.4 times more than in the same period last year, Allinsurance.kz wrote.

It is noted that for the entire last year, GWP in the segment amounted to only KZT 56.5 billion. The motor insurance segment has grown 5.6 times over five years, and 11.9 times over a decade.

In terms motor insurance GWP collected for January - July 2023, the leader is Eurasia with KZT 9.8 billion, and the y-o-y growth was 71%. It is followed by Halyk (KZT 8 billion) and Freedom Finance Insurance (KZT 6.8 billion). A noticeable GWP portion was also generated by NOMAD Insurance (KZT 5.5 billion).

It is noteworthy that the share of Motor Hull in total GWP increased from 5% in January - July 2022 to 9.3% in January - July 2023. In voluntary property insurance, the share of motor insurance increased from 12.1% to 21%.

Experts note that the Motor Hull segment is developing at an accelerated pace and the gap in GWP for MTPL and Motor Hull is narrowing.

MTPL for January - July 2023 amounted to KZT 68.7 billion, which is only 7.4% more than Motor Hull. Whereas in January - July 2022, MTPL was 2.4 times higher than Motor Hull. Compared to last year, MTPL increased by 11.1%, which is significantly lower than the Motor Hull growth rate.

According to experts, the rise in interest in motor insurance indicates an increase in the awareness of car owners in choosing voluntary insurance as well as the benefits and advantages of voluntary insurance.

*EUR 1 = KZT 488.16 (01.08.2023)