Designing a Business Model for Establishing an Insurance Company in Kazakhstan

The thesis is exploring the feasibility of establishing a new insurance company, Autosan Insurance, in Kazakhstan, focusing on comprehensive car insurance and voluntary third-party liability insurance. The research evaluates the potential market opportunity, leveraging Autosan's existing network within the automotive industry of Kazakhstan. Through a multifaceted methodology incorporating loss ratio calculation, Monte Carlo simulation, and net present value analysis, this study assesses both the financial and strategic implications of establishing an insurance company from the position of insurance broker. The findings indicate a favorable market environment with significant growth potential driven by increasing vehicle sales and a regulatory framework good to new entrants. Financial projections suggest that Autosan Insurance could achieve a break-even point within three years, with robust profitability driven by efficient risk management and market penetration strategies. The theoretical contributions of this work lie in its application of financial and simulation models to the insurance industry, providing a framework for similar vertical integration processes in emerging markets. However, the research acknowledges limitations including the reliance on current market conditions and regulatory frameworks, which are subject to change. From the management perspective, this thesis offers strategic insights into vertical integration in the insurance sector, highlighting the benefits of direct control over operations and customer service, which could significantly enhance customer satisfaction and company reputation within the market. The study concludes with recommendations for Autosan’s management team based on the analysis, suggesting that with careful implementation of the proposed business model and strategic initiatives, establishing Autosan Insurance could not only be feasible but also highly beneficial in the context of the Kazakhstani insurance market. Keywords: Insurance Industry, Kazakhstan, Car Insurance, Risk Management, Loss Ratio, Financial Analysis, Business Model