The life insurance market began to recede at the end of 2000s. The global economic crisis gave start to a fall and, as a result, the mortgage programs that had nurtured insurers for many years collapsed. In order to prevent this sector from dying in 2012, the National Bank transformed the class of employee insurance against industrial accidents to life insurance.
Thanks to this measure, the strongest market players survived. Today there are 6 of them: Halyk Life, Nomad Life, European Insurance Company, Freedom Finance Life, State Annuity Company, and Standard Life.
Currently, the life insurance market is supported by the mortgage contracts, retirement annuities and compulsory insurance premiums of enterprises for their employees.
“Market volumes are growing every year at a quick pace thanks largely to our employees and our own insurance product development. After all, we have very high competition! It can be expected that the market will increase even more after the alleged tax benefits exclusion,” said Askar Shakenov, the Deputy Chairman of the Board of Nomad Life Insurance Company.
According to the Financial Institutions’ Association of Kazakhstan, the volume of the life insurance market has been steadily increasing by 23-24% for the last 3 years. “We expect to keep the pace of increase on the level over 20% in 2019. Such products as retirement annuity and compulsory accident insurance of employees made good progress. The growth of insurance market in general was 3% last year, life insurance itself grew by more than 20%, annuity insurance - by 17%, and compulsory accident insurance of employees - by 10%,” FIAK predicted…
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