Insurance premiums and claims payments in Kazakhstan
Insurance premiums and claims payments in Kazakhstan: how to read market trendsGrowth in insurance premiums shows an increase in the volume of contracts concluded and insurers' receipts, but in itself does not mean a proportional increase in claims payments. To draw a correct conclusion you need to take into account the portfolio structure, contract terms, claim frequency, reserves and the observation period.
- The market snapshot for 2026
- Why premiums and claims payments do not grow at the same time
- Premiums, claims payments and the loss ratio
- What a low share of claims payments shows
- What a high share of claims payments shows
- How a policyholder can use the statistics
Judging by the data presented at the round table "Kazakhstan Insurance Market: Results of 2011 and Market Development Prospects for 2012", held in Almaty at the end of January, the profitability of insurance companies fell in 2011. ROA, return on assets (the efficiency of insurance companies' assets), was 8.47% in 2011, whereas in 2010 it reached 11.71%. ROE, return on equity, also declined, from 16.78% in 2010 to 12.61% in 2011.
However, net insurance premiums showed substantial growth of 44.4% compared with 2010, reaching 133.68 billion tenge, with life insurance accounting for 33% of total premiums. Premiums of general insurance companies grew by 37.3%, and life insurance premiums by 62.3%.
Compulsory motor third-party liability insurance (MTPL) showed significant growth among the compulsory lines in 2011. According to the data presented by the organizers, MTPL premiums grew by 38% — to 25.5 billion tenge from 18.6 billion in 2010. Claims payments rose by 69% and amounted to 5.9 billion tenge. Experts attribute the significant premium growth in this sector primarily to the new procedure for concluding compulsory insurance contracts introduced on 1 January 2011 — policies were issued online, and a single policy form was introduced. This had a positive effect on reducing fraud and the number of forged policies. In addition, the number of contracts increased significantly — by 962,143. The total number of contracts is now 3,685,696. Specialists link this growth to the fact that in the first half of 2011 a large number of cars were imported into the country because of the change in import customs duties from 1 July of the previous year. In the opinion of professional participants, the MTPL market is approaching saturation. According to experts, 8 out of 10 vehicle owners in Kazakhstan are now insured. Insurers expect competition in this sector to intensify considerably.
Meanwhile, Marina Shipovalova, editor-in-chief of the magazine "Insurance Market", presenting the financial results of the 2011 insurance market, drew attention to the fact that, despite the substantial growth in MTPL premium collection, the level of claims payments here remains low and for the market as a whole stands at 23.6%. However, Sergey Lavrentyev, Chairman of the Management Board of JSC "BTA Insurance", noted that last year's losses carry over to the next one, and as a result the loss ratio will be higher. The expert stressed that the loss ratio in MTPL generally tends to rise every year.
The organizers singled out two companies that delivered premium growth of over 200 million tenge in voluntary motor insurance. The results of JSC IC "Nomad Insurance" came to 223 million tenge, and of JSC IC "Evraziya" to 208.8 million tenge. Overall, voluntary motor insurance grew by 31% compared with 2010, reaching 909 million tenge. At the same time, claims payments increased only slightly — by 11% — to 1.15 billion tenge.
Voluntary personal insurance grew by 53%. Market growth was driven by life insurance premiums, which rose to 6.2 billion tenge, or 315%, annuity insurance — 41%, and accident insurance, where premium volume grew by 69% to 11.4 billion tenge. Marina Shipovalova points out that pension annuity contracts account for 77% of the annuity insurance structure. On the one hand, experts see this as public interest in pension annuity contracts, but on the other hand they link this interest to the possibility of receiving a lump-sum payment covering several years, which is not possible when receiving pension payments from an APF. In the specialists' view, although annuities are the "longest" contracts, the high level of claims payments in annuity insurance, at 58%, shows that the scheme of "cashing out pension money" is still being used today.
Rashid Gallyamov, Director of the Brokerage Sales Department at JSC IC "Generali Life", in turn explained the growth of the voluntary personal insurance sector: "The bank channel plays a significant role in the growth of the life insurance market. In 2011 insurers managed to motivate most clients, when taking out a loan, to buy life insurance rather than accident insurance. This is a strong guarantee that the loan will be repaid in any case. In addition, the corporate and retail segments grew. Clients show more interest in long-term retail products."
Overall, insurers' net assets grew by 19.14% — to 354.8 billion tenge, net reserves increased by 34.64%, and net premiums grew by 44.4%. Experts do not rule out that these figures may indicate understated insurance reserves. The aggregate capital of insurance companies grew in 2011 by 18.4% — to 89.5 billion tenge.
The market snapshot for 2026
According to official data as of 1 June 2026, Kazakhstan's insurance sector comprised 25 insurance organizations, 10 of them life insurance companies. Since the beginning of the year 657.2 billion tenge in insurance premiums have been collected, and claims payments amounted to 197.5 billion tenge. The sector's assets reached 4.2 trillion tenge.
Simply dividing claims payments by premiums over a few months gives a benchmark, but not a full loss ratio. In January–May, premiums on annual and multi-year contracts may be received while the corresponding claims arise later. In addition, in life insurance a significant part of the obligations is long-term.
Why premiums and claims payments do not grow at the same time
- Different timing of recognition. The premium is received when the contract is concluded; a loss may occur months or years later.
- Change in portfolio structure. Growth in savings-type life insurance increases premiums without an immediate increase in claims payments.
- Inflation. The cost of repairs and medical treatment raises the average claim with a delay.
- Catastrophic events. A single large loss can sharply change the figure for an individual period.
- Claims settlement. Time passes between the event, the recognition of the obligation and the actual payment.
- Reinsurance. Part of large losses is recovered from reinsurers and is reported separately.
Premiums, claims payments and the loss ratio
The insurance premium is the price paid for the cover provided. The claims payment is the fulfilment of the obligation when an insured event is recognized. The loss ratio is used to analyse the business, but calculating it correctly requires matching earned premium with the losses relating to the same period.
Professional reporting takes into account not only paid losses but also reserves for reported claims and for incurred but not yet reported claims. Therefore the commonly used ratio of "claims payments / premiums collected" can differ noticeably from the accounting figure.
What a low share of claims payments shows
A low ratio of claims payments to premiums may mean a favourable period, a young portfolio or a large share of long-term products. But it may also call for a check of the quality of claims settlement, review times and the number of disputes. Without additional data, a low share cannot automatically be regarded either as an advantage or as a violation.
When assessing a specific company, it is useful to look at the trend over several years, reserves, the structure of classes, complaints, court disputes and the reinsurance programme.
What a high share of claims payments shows
A high share may reflect large insured events, claims inflation or a deterioration in underwriting. In some classes this is a normal feature of the period. Stability depends on whether tariffs and reserves cover the expected obligations and whether capital is sufficient for an adverse scenario.
How a policyholder can use the statistics
- do not choose a company solely by premium volume;
- do not treat the highest share of claims payments as a guarantee of your own payout;
- check the licence and the terms of the specific policy;
- compare indicators within the same classes of insurance;
- take into account financial stability, capital and reserves;
- study the claims settlement procedure and official decisions on complaints.
Compulsory types of insurance
Services in compulsory types of insurance are provided only by insurance companies holding the relevant licence. The amount of the premium and of the payment is determined by the relevant law and the circumstances of the event. General market statistics do not replace checking the specific contract and calculation.
How to compare 2011 and 2026
Nominal amounts cannot be compared without taking into account inflation, changes in legislation and the market structure. In 2011 electronic issuance of compulsory motor insurance was only just developing, whereas in 2026 digital policies and automated data exchange are an ordinary part of the market.
The role of life insurance has also changed, and new products and settlement rules have appeared. The historical article is therefore useful for understanding trends, but not for drawing direct conclusions about companies' performance today.
In brief
Premium growth with slower growth in claims payments calls for analysis rather than a simple "good" or "bad" verdict. It is important to compare like periods and products, and to take into account reserves and the lag between selling a policy and a loss. The original 2011 analysis below is preserved as a historical source.