“We have 6.4 million Kazakhstanis who have insured their lives. Of these, only 100 thousand are contracts of accumulative voluntary life insurance”, explained Zhanar Zhubaniyazova.
It is noted that the coverage of the population with voluntary life insurance in the country is only 0.8%. For comparison, in Russia this figure is 3%, in China – 82%, in the USA and Canada – 54%, in Japan – 95%. According to the concept of development of the financial sector until 2030, the level of demand for insurance market services does not exceed 7% of the population.
Among the factors that hinder the development of voluntary life insurance, the chairman of Halyk Life noted such as a decrease in the purchasing power of the population; high level of debt among the population; low level of financial literacy; low level of public confidence in insurance organizations and the industry; low level of profitability of life insurance products; weak economic incentives for the development of accumulative life insurance; low level of digitalization of the insurance industry; complexity of life insurance products.
The growth potential for voluntary types of insurance is 6 times higher than the current market volume; and it can reach KZT 250 billion (~EUR 0.53 billion). According to the National Bank, demand for life insurance programs has increased in Kazakhstan over the past 5 years. The growth rate of life insurance premiums exceeds the growth rate of deposits. If the volume of bank deposits in tenge over 5 years increased by 171.5%, and deposits in US dollars by 19.2%, life insurance premiums over this period increased by 183.6%, the source added.
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