In the 1st HY 2022, the main indicators of the life insurance market showed growth, with the exception of the volume of insurance premiums due to the high base of last year. LIC assets increased to 833.1 billion tenge. The concentration in the sector has not changed: about 80% of the life insurance market in terms of assets are still occupied by four large companies: Halyk-Life (30.3%), Nomad Life (29.2%), FFLife (13.3%) and LIC Eurasia (7.1%).
In the six months of this year the premiums have dropped by 11.6%, largely due to peak demand for retirement annuity purchases last year. The volume of payments grew by 33.2% due to the increase in life insurance payouts by 2.7 times.
“It should be noted that, unlike the general insurance sector, the bulk of LIC premiums are for individuals (84.2% as of end of 2021) and not for the corporate sector. Meanwhile, life insurance products are becoming more attractive in the current environment. Thus, LICs have the right to provide loans to their clients within the redemption amount for any purpose, including in the form of a deferral of payment of regular insurance premiums under endowment agreement,” the FIAK report says.
Experts believe that retirement annuity will soon become available to more citizens through the introduction of joint annuities (spouses or close relatives), the cost of which will be lower than individual ones.
“Thus, taking into account the indicators for the 1st HY of the year and prospects for growth in demand for insurance products from the population, the key indicators of the life insurance sector are likely to continue to grow this year,” they concluded in Financial Institutions’ Association of Kazakhstan.
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