Why banks are increasingly offering life insurance products
As commented Gulnaz Khalitova, Director of the Main Operations Department at JSC "Nurbank", the expansion of service offerings is a trend that has affected the banking sector worldwide.
- Banks are becoming a kind of financial supermarket for their clients. They see managers not just as employees executing standard banking operations, but, to a greater extent, financial consultants. Our bank also follows this ideology, becoming not only a technical assistant but a comprehensive investment consultant for clients. In this sense, "Nomad Gold" extends our range of offers that Kazakhs can take advantage of through our intermediation, relying on our consultations, says Gulnaz Khalitova.
According to her, today in Kazakhstan there is no more attractive alternative to life savings insurance, and the bank strives to convey the advantages of this product to its clients.
- "Nomad Gold" is the optimal offer on the Kazakhstani financial market for creating medium- and long-term savings. With this program, our compatriots can form capital to finance major purchases in 5-10 years. This includes paying for children's university education, investing in real estate, and saving for retirement, Gulnaz Khalitova is confident.
Kazakhs will be able to accumulate the planned amount by a certain date regardless of life's circumstances. A life insurance policy is not just a rainy day fund, but a full-fledged investment tool - like a foreign currency deposit, but with higher income and additional privileges. Currently, the yield rate on the "Nomad Gold" savings product reaches 3.26% per annum in dollars.
An attractive yield rate as well as the legal and insurance options included in the "Nomad Gold" program will qualitatively expand the range of services offered to our clients, believes the Director of the Main Operations Department at JSC "Nurbank".
"Nomad Gold" is a product developed by the life insurance company Nomad Life. This insurer will provide financial support to the insured or their relatives in the event of an insurance claim. It guarantees the payment of not only the entire contribution amount but also the accrued investment income for the entire period specified in the contract. Contributions to "Nomad Gold" are not subject to confiscation, arrest, or division during divorce.
- "KСЖ Nomad Life" is a recognized leader in the Kazakhstani life insurance industry. This company is distinguished by advanced business solutions, a drive to implement new technologies in its field, and the constant improvement of the insurance market business environment. These are the main reasons why JSC "Nurbank" decided to develop a partnership with Nomad Life, including in cross-selling. One of the bank's priority areas is to meet client needs, improve service quality, and provide a full range of banking services. But the main goal is to preserve and increase clients' money, concludes Gulnaz Khalitova.
Supervisory functions over life insurance companies in Kazakhstan are performed by the National Bank. Civil and insurance legislation requires KСЖ to fulfill a number of obligations including fifteen prudential standards, which control the distribution of insurance company's funds. Insurers are obliged to comply with requirements not only for the adequacy of funds for making payments but also to keep them in certain high-liquidity, most reliable financial instruments. The fulfillment of standards is monitored on a decadal basis.
Such strict requirements for insurers are due to their crucial role in compensating for damage caused to the health and life of employees in the course of their work and providing pension payments. It is important to note that one of the factors influencing the positive decision to launch the cross-selling project was the full compliance of Nomad Life with the supervisory authority's requirements, confirmed by both the National Bank's auditing group and external auditing organizations, as well as the company's leading position in these socially significant areas.