The insurance market assets increased by 19% in the first quarter of 2021 compared to the same period last year and by 9% compared to 2020. Life insurance companies (LICs) rising at an outstripping pace of +31%, have become the growth driver, while the assets of general insurance companies have increased by 10-12%.
Insurance premiums are performing positive dynamics (growth by 34% against the background of recovery of economic activity and increase in demand for LIC products from 60 to 102 billion tenge (+70%), in particular, retirement annuity and endowment insurance with participation in profits.
The ratio of premiums to payments by LICs is 8%. More than half of companies exceed the average market level of payments. Claim payments by type of activity in period under review presented by LICs were 41%.
“Recovery of business activity and relaxation of restrictive measures will promote the insurance market growth. Market activity will be induced by a further increase in demand for LIC products, as well as growth of general insurance product consumption, including real estate and transport insurance (CNC), Mandatory Insurance of Civil Liability of Motor Vehicle Owners,” they concluded in Financial Institutions’ Association of Kazakhstan.
Photos are from open sources.