bs-preloader__icon
ru kz en

What life insurance products are in demand in Kazakhstan

In 2023, there was a sharp increase in demand for retirement annuities, life and accident insurance, reports the analytical center of Financial Institutions’ Association of Kazakhstan (FIAK).
What life insurance products are in demand in Kazakhstan

In 2023, the growth of the life insurance sector was mainly associated with the introduction of new social products by LICs, as well as with the increased interest of Kazakhstanis in life and health insurance, including after the earthquake in Turkey, the explosion at the ArcelorMittal mine, etc.

“As for life insurance products with a social component, we can highlight a joint retirement annuity among them, which combines the pension savings of close relatives, as well as life insurance within the framework of the state educational savings system (SESS), the potential of which is estimated by LICs at 30 billion tenge by the fifth year of product introduction,” says the FIAK release.

At the end of last year, the growth of LIC income from insurance activities was 1.7% with an increase in net expenses for insurance payments by 37.7%, which was simultaneously associated with an increase in their number (+21.9%) and cost (increase in average payment by 31.4%).

In 2024, the growth of insurance premiums in the sector may be facilitated by the implementation of instructions of the head of state dated September 1, 2023 on introduction of a unified voluntary savings system “Keleshek”, which provides for starting educational capital from the government (60 MCI for children aged 5 years), payment of an annual state premium (5- 7%) and investment return.

“The country also plans to launch imputed professional liability insurance for medical workers, as well as further digitalization in the process of loss adjustment and receiving insurance payouts. Let us note that the online format, both when concluding an agreement and receiving payment, allows LICs to significantly optimize operating costs (-42.8% in 2023). However, legislative amendments regarding compulsory insurance of employees against accidents may limit the growth potential income of LICs. The rules on introduction of pre-retirement payments relating to preventive and rehabilitation measures, as well as exclusion of the victim’s guilt from the assessment of compensation, together can lead to an increase in payouts for this product,” the FIAK release notes.

According to the forecasts by the global consulting company Accenture, the current year will be positive for LICs operating in emerging markets (revenue growth by an average of 5.1%) against the backdrop of increased demand for savings and pension products, as well as minimization of costs with the development of artificial intelligence technologies.

Photos are from open sources.

Share
read also
Unexpected cause of death among young people revealed
Unexpected cause of death among young people revealed

In Western countries, more and more patients with stomach and intestinal cancer are u...

Women in Australia are less likely to buy life insurance
Women in Australia are less likely to buy life insurance

Women in Australia save on life insurance, writes Financy....

Over 30,000 disability confirmation applications reviewed distantly
Over 30,000 disability confirmation applications reviewed distantly

As part of implementation of a pilot project on remote medical and social assessment ...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application