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What is holding back the development of the life insurance market?

The share of life insurance premiums in the GDP of the Republic of Kazakhstan was 0.4% in 2023, a correspondent of the business information center Kapital.kz reports.
What is holding back the development of the life insurance market?

“The number of insured clients in this area has reached 6.4 million people, of which only 100 thousand are voluntary life insurance contracts,” noted Zhanar Zhubaniyazova, Chairman of the Board of LIC Halyk-Life. She explained that almost 6.4 million were people who insured their lives when receiving a loan.

The insurance premium per capita is now $50, which is very low. The share of insurance premium in the nominal salary is 6.3%.

“Voluntary types of insurance in the Republic of Kazakhstan are not covered by the guarantee of the Insurance Payments Guarantee Fund (IPGF). We are now actively working on increase of people’s trust in this product,” the speaker noted.

A low level of profitability of insurance products is another stripe for industry players. “People do not fully understand that in addition to investment return, life insurance is also insured. Let us say a person enters into an agreement for a million tenge and makes a 10 thousand tenge down payment, planning to make savings for several years. We guarantee that if something, God forbid, happens to the client when they have just left the office, a million tenge will be received by their child or another person, whom they indicate as beneficiary,” Zhanar Zhubaniyazova explains.

Source: https://kapital.kz/finance/125288/chto-sderzhivayet-razvitiye-rynka-strakhovaniya-zhizni-v-kazakhstane.html

Photos are from open sources.

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