Insurances

The Insurances market in Kazakhstan is projected to reach a market size (gross written premium) of US$6.42bn in 2024.
Among the different segments, Life insurances dominates with a projected market volume of US$3.77bn in 2024.
The average spending per capita in the Insurances market is expected to amount to US$323.80 in 2024.
In a global comparison, it is noteworthy that the highest nominal value is reached the United States, with a projected market size of US$3.8tn in 2024.
Looking ahead, the gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.78%, resulting in a market volume of US$7.36bn by 2029.
Once again, the United States is projected to generate the highest gross written premium with US$3.8tn in 2024, according to global comparisons.
Kazakhstan's insurance market is experiencing a surge in demand for health insurance as the population becomes more health-conscious.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Kazakhstan has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Kazakhstan are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that not only cover traditional areas such as health and property, but also offer more specialized products like cyber insurance and travel insurance. Trends in the market show a rising demand for digital insurance solutions, with more customers opting to purchase policies online. This shift towards digital channels is driving insurers in Kazakhstan to enhance their online presence and develop user-friendly platforms to cater to the evolving needs of tech-savvy customers. Additionally, there is a noticeable trend towards customization, with insurers offering personalized insurance packages to meet individual customer requirements. Local special circumstances, such as the government's efforts to promote financial literacy and insurance awareness among the population, are playing a crucial role in shaping the insurance market in Kazakhstan. The introduction of regulations to improve transparency and consumer protection is also influencing the market dynamics, fostering trust between insurers and customers. Underlying macroeconomic factors, such as steady economic growth and increasing disposable income levels, are contributing to the expansion of the insurance market in Kazakhstan. As the country's economy continues to develop, more individuals and businesses are recognizing the need for insurance as a means of mitigating risks and safeguarding their assets. This growing awareness, coupled with favorable regulatory reforms, is expected to drive further growth in the insurance sector in Kazakhstan.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.