Insurances - Central Asia

Central Asia

The Insurances market in Central Asia is projected to reach a market size (gross written premium) of US$22.79bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$15.15bn in 2024.
The average spending per capita in the Insurances market amounts to US$287.50 in 2024.
When compared globally, it is evident that the highest nominal value is reached the United States, with a projected market size of US$3,788.0bn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 3.19%, resulting in a market volume of US$26.66bn by 2029.
In global comparison, the United States will continue to generate the highest gross written premium, projected at US$3,788.0bn in 2024.
In Central Asia, the insurance market is experiencing a surge in demand for health insurance due to the region's growing middle class and increasing awareness about the importance of healthcare.

Market

Region

Region comparison

Currency

Analyst Opinion

The Insurances market in Central Asia is experiencing significant growth and development.

Customer preferences: Customers in Central Asia are increasingly seeking insurance products that provide comprehensive coverage and financial security. The rising awareness about the importance of insurance in mitigating risks and uncertainties is driving demand for a wide range of insurance products, including life, health, and property insurance.

Trends in the market: In Kazakhstan, there is a growing trend towards digitalization in the insurance sector, with more insurance companies offering online services and digital platforms for policy purchases and claims processing. This shift towards digital channels is enhancing customer convenience and improving operational efficiency for insurance providers.

Local special circumstances: Uzbekistan is witnessing a surge in demand for microinsurance products, particularly among low-income individuals and small businesses. The government's initiatives to promote financial inclusion and protect vulnerable populations have led to the expansion of microinsurance offerings in the country. This trend is expected to continue as more insurers develop tailored products to meet the specific needs of underserved segments.

Underlying macroeconomic factors: The economic growth and stability in Central Asian countries are contributing to the overall expansion of the insurance market. As disposable incomes rise and the middle class expands, more individuals and businesses are looking to safeguard their assets and investments through insurance coverage. Additionally, regulatory reforms and initiatives to enhance transparency and consumer protection are further bolstering confidence in the insurance sector.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.