Kazakhstani life insurance companies completed the past year successfully due to their own strategies, thanks to the insurance market digitalization and introduction of new ARDFM projects, as part of the Plan of Legislative Works of the Government of the Republic of Kazakhstan for 2021 “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Regulation and development of the insurance market and the securities market”.
“Deferred retirement annuity was launched and tax benefits appeared under the endowment life insurance programs last year. The draft law also provides for the introduction of a joint (marital) retirement annuity. The program will combine the pension savings of a married couple or close relatives and redistribute payments between them under a retirement annuity agreement. For example, if one spouse does not have enough pension savings to buy a retirement annuity, and the other has a surplus, then a joint retirement annuity will allow both of them to receive life benefits,” explains Azamat Yerdessov, the Board Chairman of LIC Freedom Finance Life.
LICs will shortly take part in the State Educational Accumulative System (SEAS). Thanks to it, Kazakhstanis will be able to have savings deposits for covering education fees of their children in the future. “There is probably no need to talk about some fundamental situation changes, as life insurance is evolving in our country. And as far as it is possible for developing countries, it is sufficiently advanced. (…) We all hope that the economic performance of our country will contribute to a greater penetration of life insurance for our citizens,” says Vitaly Lyubimov, the Managing Director of LIC Halyk-Life.
Insurers are also investing in their own digitalization. After all, the younger generation is more willing to purchase goods and services via the Internet. “We need to automate business processes, introduce new information technologies into the insurance service promoting processes, bring measures to support the insurance industry at the government level,” explains Kairat Chegebayev, the Board Chairman of LIC Nomad Life.
The Board Chairman of LIC Centras Kommesk Life Gulzhan Dzhaksymbetova says that the company she leads, is focused on people’s needs: “Being a young and progressive company, we have healthy ambitions. Under the latest qualitative changes in the industry, we are constantly studying the customers’ needs, inventing optimal competitive products, innovative technological solutions, and trying to meet the high demands for service.”
Life insurance is a product that is in demand in the society with a solid middle class. The key obstacle to saturating the insurance market in Kazakhstan is always the same, a low level of well-being of the population, if people’s income level increases, the insurance market will grow as well.
Photos are from open sources.
