As the market experts note, despite deterioration of the external environment and risks associated with reinsurance and investment activities, the non-life market in 2022 saw growth in all key indicators. Assets of non-life insurers increased by 9.4% to KZT 1,147.1 billion, which is 55.5% of total market assets.
Sector's liabilities increased by 21.2% to KZT 545.5 billion, mainly due to an increase in unearned premium reserves (+27.8%) and reported but unsettled losses (+17.6%), according to Allinsurance.kz. The industry remains moderately concentrated: 86% of the sector's assets are owned by 7 (out of 17) major players in the general insurance market.
At the same time, in 2022, non-life insurers such as London-Almaty (joined Freedom Insurance) and Kommesk-Omir (switched to life insurance) left the market.
The non-life business increased on the back of an increase in demand for motor vehicle (+53.9%) and property (+13.4%) insurance products. In 2022, 85.8% of all non-life insurance paid claims were for MTPL, property, Motor Hull, and health insurance.
Growth in income from insurance activities (+25.9%) in the form of remuneration on securities (+27.9%) and from foreign currency revaluation (3.2 times) was almost completely offset by growth in the sector's expenses (+33.2%). As a result, net profit of non-life insurers for 2022 did not change significantly - an increase of 2.8%, to KZT 73.5 billion.
The weighted average return on equity (RoAE) for the market was 12.7% (17.0% in 2021) with inflation of 20.3%. Even though non-life insurance premium per capita increased in 2022 (+15%), its level is still almost 3 times lower than the average level of developing countries (S&P), which indicates a high potential for further growth.
Life insurance, in contrast to the non-life sector, recorded a fall of more than 11% at the end of the year. Annuities were the driver of the decline. On the other hand, paid claims in life insurance did not grow as significantly (+19%) as in non-life insurance.
Of the 26 insurance companies operating on the market at the end of the year, EURASIA holds the lead, with its share growing to 18%. The second and third places are occupied by HALYK-Life and HALYK, respectively.
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