Overview of unit-linked products in the world and Kazakhstan

Abstract

This article provides a comprehensive overview of unit-linked products, a versatile financial tool combining insurance with investment opportunities. These products offer a range of benefits, including regular and lump sum premium savings, investments, and pensions, along with traditional life insurance coverage for accidental death, disability, and critical illness. The development and characteristics of unit-linked products are explored, with insights from Milliman's studies presented by Alexander Ofutin. Unit-linked products have been popular in developed markets like the UK and US, offering tailored retirement planning and investment options. European markets exhibit varied adoption, with Northern Europe focusing on pension-related products and Southern Europe on short to medium-term investment-linked life insurance.

Recent innovations include guaranteed unit-linked products, variable annuities, and indexed unit-linked products, enhancing the appeal for risk-averse investors seeking growth potential. In Kazakhstan, unit-linked products were introduced in 2019, with Nomad Life and Kommesk-Өmіr leading the market. Nomad Life's "ZOLOTO NOMADOV Invest" and Kommesk-Өmіr's programs like "Omіr+", "Satti Omіr", and "Bata Omir" highlight the flexibility and diverse investment strategies available, catering to different financial goals such as retirement, children's education, and life protection. These products are positioned as essential components of holistic financial planning, offering both protection and growth, with tax benefits and capital accumulation features enhancing their attractiveness.