As noted, for the first time in the last 17 years, the insurance company Halyk Life ranked top on the market, collecting the largest GWP in 7 months of this year – KZT 166 billion (~EUR 0.32 billion). The life insurer's sales growth was 90%.
“Insurance companies’ total GWP has grown significantly this year. According to the National Bank, premiums on the market amounted to a historically maximum of KZT 168 billion (~EUR 0.33 billion) in July 2024 alone. I would like to note that in the entire history of my observations, since 2008, this is the highest sales volume. This figure is 40% higher y-o-y. Direct insurance premiums are also growing – KZT 825 billion for 7 months, which is 37% more than in the same period of 2023”, the Chairman of the Board of Freedom Insurance noted.
The number of active insurance contracts has reached almost 9,800,000, and has grown by 13% since the beginning of the year. According to the expert, this is due to the growth in Motor Hull sales. In addition, the growth in the number of contracts was influenced by life insurance companies, which concluded contracts for pension annuities for KZT 192 billion during the period, which indicates an increase of 200%. Property insurance grew by 11%, although last year it was the leading product in the industry. Now property insurance ranks second in terms of GWP (KZT 162 billion). Life insurance ranks third, which grew by 20%, generating KZT 136 billion. These are followed by compulsory employer liability insurance to employees, voluntary accident insurance, Motor Hull, voluntary health insurance, voluntary motor third-party liability insurance.
“Of the top 5 products by GWP, the first three are voluntary types of insurance, the other two are compulsory types. The market is growing thanks to voluntary classes, which are somehow connected with the banking sector. Banks and credit organizations issue unsecured loans, which include accident insurance, life insurance, mortgage and car loans have “built-in” insurance for apartments and cars”, Azamat Kerimbayev explained.
“Now there is no clear leader on the market, but there are several large players that cannot be discounted. This happened partly due to redistribution of resources among four financial groups. Those are the Eurasian Financial and Industrial Group, the Nomad financial group, Freedom, Halyk. A new player is rising - Sinoasia with the support of BCC (Bank Center Credit), which will gradually take its market share. All these companies will cover a large part of the market and distribute it among themselves. Competition will increase between them, and therefore the quality of products and services will improve”, the expert added.
*EUR 1 = KZT 511.45 (as of July 31, 2024)
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