Under the conditions of geopolitical uncertainty, external shocks and the national currency volatility, endowment insurance is becoming an alternative source of financing that not only saves but also increases the funds of depositors. Thus, according to results of two months of this year, LIC Nomad Life became the leader in terms of collected premiums: 14.8 billion tenge, or 31.1% of the market. Besides, Nomad Life entered the TOP-3 in terms of collected premiums in general, which proved the success of the company and the demand for its products. Nomad Life offers 9 products in 6 areas, including 3 investments and endowment insurance products in US dollars: ZOLOTO NOMADOV Invest, ZOLOTO NOMADOV, CAPITAL USD.
Halyk-Life company took the second place in terms of collected premiums among LICs with the amount of 14.1 billion tenge. Freedom Finance Life closes the TOP-3 with the amount of insurance premiums for the period under review of 5.2 billion tenge.
The three listed companies form more than 70% of the market, which indicates a high concentration and clear advantages of the largest players in the sector.
The article notes that the life insurance market abroad is still much more developed. For people in developed countries, as well as in many developing countries, insurance is a way of life, a conventional way to protect health and well-being and, of course, an important investment tool. Kazakhstan is gradually approaching the level of OECD countries. So, for example, the share of premiums collected by Kazakhstani LICs from the total premiums in the insurance market by the end of 2021 amounted to 46.6% (in 2020 - 40.3%), while this index in OECD countries was 48.2% at the end of 2020. The share of life insurance in the insurance market reaches significantly higher values in some countries. Thus, as of end of 2020, this index in Denmark was 72.8%, in Ireland - 76.6%, in Luxembourg - 88.4%, in Singapore - 77.1%, in Italy - 74.4%, in the Great Britain - 70.5%, etc.
Photos are from open sources.
