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Life insurance has become the main growth area of the Kazakhstani insurance market – (FIAK)

Despite the social distancing measures throughout the country this year, the Kazakhstani insurance sector continues to spur growth, according to the report by the Analytical Center of Financial Institutions’ Association of Kazakhstan.
Life insurance has become the main growth area of the Kazakhstani insurance market – (FIAK)

Therefore, for eight months of 2020, the sector's assets have grown by 18.2% to 1,426.1 billion tenge. There is an increase in the sector concentration. Thus, the Top 3 companies account for 48.5% of all assets versus 48.3% at the beginning of the year.

Meanwhile, life insurance remains the main growth area for the sector. LICs accounted for almost half of the growth in assets of the entire sector in 2020. The share of LICs in the sector's assets since the year beginning has increased from 20.0% to 25.8%. It should also be noted that more than a quarter of the growth in the sector's assets is made by LIC Nomad Life - plus 80.3 billion tenge to 200.9 billion tenge.

The collected insurance premiums in January-August 2020 amounted to 370.1 billion tenge against 339.9 billion tenge in the same period last year. There is an increase in voluntary types of insurance, but the volume of premiums on compulsory types of insurance has slightly decreased. The amount of net insurance premiums has grown by 5.9% to or 16.8 billion tenge, to 301.5 billion tenge.

The amount of insurance payouts for eight months of this year was 106.4 billion tenge against 106.8 billion tenge a year earlier. However, the net amount of insurance payouts dropped by 8.3% to 60.5 billion tenge.

Meanwhile, the sector's net income for eight months of 2020 has reached 88.0 billion tenge, which is 36.6 billion tenge or 71.2% higher than in the same period last year. The ROAA of the sector improved from 4.7% to 6.7%, and the ROAE from 10.4% to 14.7%. Such a significant improvement in the sector's profitability is associated with an increase in profit from investment activities. Thus, the sector's income from investment activities as of January-August 2020 has made 88.9 billion tenge against 48.4 billion tenge in the same period last year.

Source: http://www.afk.kz/ru/analytics/monitor-nbrk/straxovoj-sektor-kazaxstana-forsirovannyij-rost-vopreki-pandemii.html

Photos are from open sources.

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