Soaring Road Accidents and Insurance Demand in Kazakhstan
Rising road accidents in Kazakhstan fueling growth of auto insurance sector
In Kazakhstan, the number of road accidents and injuries is on a staggering rise, with over 8,600 people wounded – a figure significantly higher than previous years’ averages (2015-2024). This startling jump is underscored by experts on Ranking.kz, who've pointed out the contrast between these recent figures and the relatively lower casualty ranges experienced during that time period.
Likewise, the number of accidents themselves has shown a disconcerting increase, with over 6,200 incidents reported in the first quarter of the current year – that's more than a 1.5-fold increase compared to the same period last year.
Bracing for the Risks: The Call for Protection
These grim statistics serve as a stark reminder of the growing perils facing road users. Accidents not only inflict severe physical harm or, regrettably, claim lives but also generate substantial financial burdens, from vehicle repairs to compensation for property damage or third-party injuries. Faced with such potential losses, insurance has become increasingly indispensable as a protective measure.
Amid these rising dangers, there's a surge in demand for optional car insurance packages. These policies offer broader coverage when compared to mandatory ones.
A prime example is the spike in premiums for voluntary Civil Liability Insurance (CLI) of vehicle owners between January and February 2025. The increase stood at a whopping 62.1%, pushing the figure to KZT 425.4 million.
The public's opinion on voluntary car insurance KASKO has also evolved. Initially perceived as an elite accessory for luxury car owners, KASKO is now recognized more broadly as a protective tool that safeguards vehicles from a multitude of risks – from accidents (regardless of fault) to theft, vandalism, natural disasters, and other damages. According to market statistics, public awareness of the value of KASKO has strengthened notably over the last three years. Insurance premiums for voluntary car insurance (KASKO) in January and February 2025 totaled KZT 13.4 billion.
It's worth mentioning that Kazakhstan's insurance sector has been experiencing growth. As per the Agency for Regulation and Development of the Financial Market, as of March 1, 2025, 25 insurance organizations were operational in the country. The total insurance premiums collected in the first three months of 2025 saw a 23.8% growth compared to the same period in 2024, amounting to KZT 281.7 billion. The upsurge in activity within the auto insurance segment is part of this broader trend and is directly linked to the citizenry's need to secure protection against rising road accident risks.
Previously, we discussed the projected health insurance costs for Kazakhstanis in 2025.
While recent search results don't offer specific details about current trends or growth in Kazakhstan's auto insurance sector, particularly KASKO, we can draw some inferences from related sectors and trends in the country:
- General Insurance Trends: Kazakhstan's insurance sector assets increased by 1.0% to KZT 3.2 trillion in February 2025, marking growth within the sector overall[1]. However, this data doesn't isolate auto insurance trends.
- Indirect Indicators from the Auto Industry: The Kazakhstan auto industry exhibited significant growth, with a 17.6% increase in automotive equipment production in March 2025 compared to the previous year[2]. A flourishing auto industry may potentially foster increased demand for auto insurance, including KASKO policies.
- Broader Insurance Market Analysis: The Kazakhstan insurance industry report by GlobalData offers insights into the overall industry, but it doesn't specifically focus on auto insurance trends[3]. To glean more specific insights on KASKO or voluntary car insurance trends in Kazakhstan, targeted data or research would be necessary.
- I find the contrasting roads statistics in Kazakhstan disheartening, as the number of road accidents and injuries has significantly increased compared to previous years (2015-2024), making insurance a more essential protective measure.
- Amid the rising road accident risks, there's a notable surge in demand for optional car insurance packages, especially for Civil Liability Insurance (CLI) and voluntary car insurance (KASKO).
- The escalating demand for KASKO is reflected in the increase of premiums for voluntary Civil Liability Insurance (CLI) of vehicle owners, such as the 62.1% growth observed between January and February 2025.
- Though the current news does not provide specific details about the growth of Kazakhstan's auto insurance sector, the growth of overall insurance sector assets and thriving auto industry suggest an indirect increase in demand for KASKO policies.
- As I delve deeper into the auto insurance trends in Kazakhstan, I aim to gather more targeted data or research to gain a clearer understanding of the development of KASKO or voluntary car insurance in the country.
