Life insurance is currently developing differently in the world. For example, the most popular insurance programs in the USA are accident insurance during natural disasters and health insurance for employees, in Europe – retirement insurance, in China - insurance against critical illnesses, in Japan - life insurance programs and earthquake insurance, in India - health insurance.
What life insurance products are popular in Kazakhstan?
According to statistics by the National Bank of the Republic of Kazakhstan, there are currently three areas of life insurance, which premiums have increased significantly compared to the same period in 2022. These are retirement annuity (+2.3%), voluntary accident insurance (+4%) and endowment programs within the framework of the state educational savings system (+0.04%).
Retirement annuity contracts are most often concluded in Almaty (60%), Astana (8.1%) and the East Kazakhstan region (6.4% of all market premiums in this segment). The least amount is in the Ulytau region (0.03%) and the Kyzylorda region (0.03% of the total premiums).
Voluntary accident insurance is most often bought in Almaty (37%), East Kazakhstan region (10.8%) and Ulytau region (9.1% of the total premiums). The least is in the Abay region (0.04%) and the North Kazakhstan region (0.7%).
Endowment life insurance within the SESS framework has been launched in 2023. Parents can make savings for their children’s higher education with it. The program terms provide for payments from both the life insurance company and the government. The LIC accrues up to 8% of guaranteed return for the entire period of savings. According to the agreement, the state premium of 5–7% is also awarded once a year. Besides, indexation of periodic insurance payments of up to 8% is provided. If the child wins a grant, the parents will be able to receive the entire accumulated amount and use it at their own discretion.
The life insurance market will be undergoing global changes in the next two years in general. Digitalization has started in Kazakhstan since 2019, and for many it is not a novelty now to conclude online contracts under endowment programs in 5 minutes or issue a policy when traveling abroad on the insurer’s website. And this is just the beginning of the digital transformation of the insurance market.
In order to maximally simplify, speed up and secure the insurance process for people, more technological mechanisms, such as Big Data, artificial intelligence, robotization, ESG principles, etc. are being developed and implemented now. These digital trends will help transition the insurance market life to a new level in 2024-2025.
Photos are from open sources