The sector concentration has not changed: 80% of the life insurance market in terms of assets is still occupied by four large companies: Nomad Life (+3%), Halyk-Life (-2%), FFLife (-9%) and LIC Eurasia (+4%).
In the 1st Q, net insurance premiums dropped by 14%, which could be explained with the peak demand for the retirement annuity purchase last year, when it doubled after a legislative reduction in the threshold for pension savings for annuity purchase.
The volume of payments grew by 38% due to a 3.3-fold increase in life insurance payments. As a result, the ratio of payments to premiums in the LIC market increased from 8% to 13% compared to the 1st Q last year, provided that 53% of all payments fell on annuity insurance.
The legislative improvement of Unit-linked products and marital annuities, the participation of LICs in the state educational system, as well as further digitalization of the industry can be an additional impetus to the development of the LIC market in 2022.
Photos are from open sources.
