KAZAKHSTAN: the insurance sector's assets at the end of November 2022 grew by almost 13% y-o-y

16 January 2023 —
In November 2022, the insurance sector's assets increased by 1.1% to KZT 2.1 trillion/EUR 4.3 billion (an increase of 12.7% since the beginning of 2022), mainly as a result of an increase in income from insurance activities, Allinsurance.kz wrote with reference to the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market.

As of December 1, 2022, the largest part in the asset structure is formed by securities (73% or KZT 1.5 trillion), cash and deposits in second-tier banks account for 6% (KZT 124 billion), insurance receivables - 3.6% (KZT 73 billion).

Insurance liabilities for November 2022 increased by 0.5% to KZT 1.3 trillion (growth since the beginning of 2022 by 16.9%). Total equity in November 2022 increased to KZT 791 billion, mainly due to profit from insurance activities. Net profit in the insurance market in November 2022 amounted to KZT 14.1 billion (since the beginning of 2022 - KZT 131.4 billion).

For January-November 2022, the number of concluded insurance contracts for individuals and legal entities increased by 3.9% compared to the same period in 2021. The main growth was recorded in third party liability insurance of vehicle owners, travel insurance and health insurance.

Insurance premiums for 11 months of 2022 amounted to KZT 698 billion, which is 12.2% more y-o-y. The main growth drivers are the classes of compulsory insurance and voluntary property insurance.

Since the beginning of the year, compulsory insurance reached KZT 152 billion (+29.2%). The increase occurred mainly in the insurance of employees against labor accidents. At the same time, voluntary personal insurance for 11 months of 2022 amounted to KZT 255 billion (-4.7%). The decrease was mainly due to a decrease in pension annuities by 60.4%. Voluntary property insurance since the beginning of the year reached KZT 291 billion (+22.9%). The growth was mainly due to an increase in property damage insurance by 15.6% and civil liability insurance by 45.6%.

Paid claims for January-November 2022 amounted to KZT 165 billion, which is 47.8% more than in the same period of 2021. The increase was mainly due to an increase in payments for loan insurance and civil liability of vehicle owners.

According to the insurance market regulator, as of December 1, 2022, the insurance sector of Kazakhstan is represented by 27 insurance organizations, of which 9 are life insurers.

*EUR 1 = KZT 488.32 (01.12.2022)