STATISTICS: KAZAKHSTAN, FY2019: Life insurers' profit almost doubled, while non-life sector's profit dropped by more than 25% y-o-y

6 February 2020 — Marina MAGNAVAL
GWP of the Kazakh insurance market increased by about 32% y-o-y in 2019, to KZT 508.5 billion (EUR 1.19 billion), while the net premiums went up even by 43%, as the data, published by the National Bank show.

The market share of the life sector increased by almost 6%, leading to a decrease of the share of non-life sector to 70.84%. Among insurance classes that showed significant growths, it's worth mentioning pension annuity, voluntary life insurance (market share grew to 15%), voluntary property insurance (+23%), MTPL (+26%, to KZT 76.7 billion), CARGO (+87%) and voluntary accident insurance (+57%). In general, out of 35 insurance classes, only 8 (with less than 0.5% of the market portfolio each) reduced their volume at the end of 2019.

The most popular insurance class in Kazakhstan is MTPL. In 2019, in terms of GWP, this class, was the second largest non-life insurance class after property insurance. MTPL insurance is now provided by 17 companies, but the first five of them generate 70.5% of MTPL GWP (vs 66.5% a year ago). Experts emphasize over the high loss ratio of MTPL insurers, the introduction of online sales did not help to solve the key problems. Insurers underline the need to review the tariffs, which were last updated in 2007.

Paid claims increased by almost 133%, to KZT 221.5 billion (EUR 518.91 million). Significant growth of paid claims was demonstrated by classes such as property insurance (+221%), motor classes (+30%), life insurance (+49%) and others.

According to the National Bank, in 2019, almost all market indicators recorded growth, except for insurers' profit (-0.6%, down to KZT 78.4 billion). At the same time, it's important to mention that 26.2% of the profit was provided by life insurers, who almost doubled their profit, while non-life insurers' overall profit dropped by 25.5%. Market assets rose to KZT 1.2 trillion (+15%), insurance reserves increased to KZT 570.2 billion (+9.7%), while charter capital went up to KZT 295.3 billion.

EURASIA remained the leader of the non-life sector with a share of almost 26%, while the life sector was led by Halyk-Life with a share in life GWP of 41%.

*1 EUR = 426.85 KZT (December 31st, 2019)

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