Freedom Life chairman on AI, digital insurance and long-term planning

The ecosystem allows individuals to address various needs as their lives evolve. Initially, a person uses banking services – the foundation of everyday finances. Later, as new goals emerge, they begin to invest. Life insurance complements these tools when it comes to long-term planning and financial protection.

For instance, consider someone who has a child. It becomes important not only to save for that child’s education but also to ensure the goal is met, even if something were to happen to the parent.

This is where life insurance comes in. We help link today’s financial decisions to the future a person wishes to create for themselves and their family. Our products enable clients to plan for that future while also securing financial protection against circumstances that could derail those plans.

Individually, banking, investment and insurance products serve different purposes. Together, they allow the ecosystem to build relationships with clients that span decades.

We saw immense potential in online insurance from the very beginning, even while the market was still adapting to the concept. The pandemic significantly accelerated this process. When standard client interactions became restricted, companies had to enable people to purchase insurance coverage remotely. That is how the first online product emerged. Then another one. Gradually, more complex solutions – including savings plans and pension annuities – also began shifting to a digital format.

This experience showed us how much depends on the amount of effort required from the client. A person might understand the benefits of insurance but put off the decision if purchasing a product involves visiting an office, gathering documents and navigating a complicated procedure. When the entire process is streamlined into a few actions on a smartphone, moving from intention to purchase becomes much easier. That is why, for us, digitalization is directly linked to the accessibility of insurance.

At the same time, the main challenge lay not so much in the technology itself as in changing customer habits. There is a well-known principle in the insurance industry: “Insurance isn’t bought, it is sold.” People are used to having a manager or an agent who tells them about a product, explains its value and helps make a decision. In a digital environment, this has to be built differently. Therefore, for us, investing in online channels isn’t just about moving existing products to a smartphone – it’s about creating an entirely new customer journey.

Integration allows us to offer an insurance product at the exact moment a person has a relevant need – for example, when they are planning a trip or opening a bank card for their child. For a traditional insurance company, the path to that client would be long. First, they would need to reach them through advertising or other channels, generate interest in the product and only then guide them through the purchase process.

Within an ecosystem, that journey becomes much shorter. An insurance solution can be embedded directly into the specific scenario where it is truly relevant. For instance, travel insurance is offered when the client is purchasing an airline ticket, a savings plan when a person considers their child’s financial future and opens a card for them, and a pension annuity when the client reaches a certain age. We initially developed this approach through partnerships with various online services, and today it is actively evolving within the Freedom ecosystem itself.

For the company, this also means a shared technological infrastructure, unified digital channels and the ability to build consistent customer interactions. Several of our products are already available on the Freedom SuperApp, each addressing a specific life need. The ecosystem allows us to link these products to specific scenarios and individual needs seamlessly.

The Freedom SuperApp gives us access to a large audience already using the ecosystem’s products and allows us to significantly shorten the journey from identifying a need to purchasing insurance. It is a key channel for us, and we are actively integrating our solutions into it.

However, we don’t build our business solely around the ecosystem; we continue to develop our own customer acquisition channels. This creates a mutually beneficial ecosystem effect: The ecosystem drives new customers to our products, while Freedom Life JSC, in turn, directs its own audience to other services. Therefore, the ecosystem’s value cannot be measured solely by sales volume through a single channel. What matters more is the ability to build long-term relationships with customers and consistently offer them a variety of solutions.

As of today, our company ranks among the largest life insurance companies in Kazakhstan. We hold third place in the market by volume of insurance premiums and payouts. We have a market share of over 19% and a customer base exceeding 2.6 million people. Our insurance premiums total 184 billion tenge, while payouts to clients amount to approximately 38.8 billion tenge. For us, payouts are a crucial part of the picture; they represent the obligations the company has fulfilled to individuals and their families.

Pension annuities remain our primary growth driver, accounting for the largest share of our insurance portfolio. Consequently, a significant portion of our initiatives focuses on this specific product.

We have already integrated pension annuities into the Freedom SuperApp and fully digitized processes that previously required paperwork. The next step is the launch of a referral program that will allow users to recommend the product to others. This is a key area for us, as a pension annuity enables individuals to start receiving payouts before the standard retirement age, while digitalization makes this instrument significantly more accessible.

Another promising segment is voluntary educational savings insurance within the framework of the national educational savings system (GONS). This is one of the fastest-growing segments of the life insurance market. Our product – Freedom Keleshek – allows parents to simultaneously build up savings for their child’s education and secure insurance coverage. In addition to investment returns from the company, the client can receive an annual state bonus and, if certain conditions are met, initial educational capital.

We also see great potential in unit-linked products. In our company, this area is represented by the Freedom Qazyna program, which combines life insurance with investment opportunities. Given the holding company’s investment expertise, this is a particularly natural fit for Freedom.

Overall, we see growth in products that address specific long-term personal financial goals; our objective is therefore to make these solutions as clear, accessible and convenient as possible in a digital format.

This is a key area for us. As of early August, the volume of pension annuity premiums totaled 113.9 billion tenge, with Freedom’s life insurance business holding a 22.8% share of this segment.

The volume of new contracts is indeed sensitive to government policy decisions. However, business sustainability cannot be assessed solely by the volume of incoming payments. Asset quality, the adequacy of reserves and capital, and the company’s ability to meet long-term obligations to clients are equally important.

Although pension annuity products have been on the market for a long time, I’m convinced that they still have growth potential. Recent changes to the pension system and regulations have significantly influenced the segment’s development, sparking interest in this instrument. The next step is to make it more accessible. I believe that moving pension annuities online will greatly simplify the customer journey and boost the product’s overall appeal – not just strengthen the position of individual companies.

I would start not by comparing interest rates, but by asking what objective the person is trying to achieve and over what timeframe they are truly prepared to plan. If the funds might be needed in the near future, having liquidity is crucial. In this scenario, a bank deposit might be the more suitable option. A long-term plan is worth considering when an individual possesses both a specific goal spanning several years and the ability to adhere to the terms of the contract.

Savings-linked life insurance offers another vital component: insurance protection. This is a distinct benefit that cannot be evaluated simply by comparing interest rates. Therefore, our goal is not to persuade someone to forgo a deposit, but to help them determine which instrument best suits their needs. Ultimately, such a choice should always be grounded in the specific goal itself, its timeframe and the required level of protection.

Indeed, Freedom Keleshek can now be purchased online via our website and we plan to launch the program within the Freedom SuperApp by the end of the year. Digitalization primarily simplifies the customer journey, requiring fewer steps between initial interest in the program and the actual purchase. Often parents recognize the need to build up capital for their child’s education in advance but put off the decision due to daily commitments or the complexity of the process itself. The online format significantly lowers this barrier.

Regarding the scale of the product, as of early September, the volume of premiums for Freedom Keleshek stood at 298 million tenge. Our market share in the GONS insurance segment reached 27%, placing us second in terms of premium volume. However, these figures reflect the product as a whole, rather than just the online channel. It is too early to discuss specific statistics. In my view, it would be more meaningful to assess the impact of digitalization after the full launch of Freedom Keleshek within the SuperApp, once a sufficient volume of data has accumulated.

The next stage will be a unified digital journey spanning the entire term of the contract. For the customer, what matters is not just selecting and purchasing the program, but also ongoing interaction: paying premiums, tracking savings, updating personal details, seeking advice and claiming payouts. All these actions need to come together to form a single, seamless and intuitive service.

We are already moving in this direction: We are enhancing our customer portal, developing integrations with partners and government systems, and expanding our presence within the Freedom SuperApp. A distinct area of focus is digital claims processing, aimed at making the payout request process as simple as possible for the client.

At the same time, we are working with AI. In the future, it should help individuals articulate their needs in plain language, understand available options and navigate product terms and conditions. However, for this entire journey to be truly seamless, it must be underpinned by a unified client profile and consistent data management. The role of technology is to guide individuals along this path, helping them navigate financial decisions and maintain control over long-term commitments.

Financial habits begin to form long before someone opens their first bank account or signs an insurance contract. Children learn how to make choices, save money and balance their desires with their means. If we explain the basic principles of money management to them at this stage, it will be easier for them to make independent, informed financial decisions in the future.

That is why we are developing projects aimed at children. It is also important to recognize that this work reaches their parents as well. Through these educational initiatives, parents join the conversation about finances. Families begin discussing savings, goals, expenses, education and their financial future. This is particularly significant for us given the very nature of life insurance. Our products are rooted in long-term planning, responsibility and caring for loved ones. The sooner a person grasps the value of these principles, the easier it becomes for them to make sound financial decisions later in life.

We therefore view our work with the younger generation as a long-term investment in financial culture. Our goal goes beyond simply creating products; we aim to foster an environment where planning for one’s financial future becomes a natural habit.

We adhere to an approach where AI must address a specific objective: either enhancing the customer experience or improving the efficiency of internal processes.

We already have an internal AI assistant for our employees called Aru. It helps staff quickly locate information within internal documents and guidelines, handle routine operational and technical queries, generate necessary data reports, and route inquiries to the appropriate departments. This reduces the time needed to process requests and alleviates the workload on specialized teams.

For clients, we are developing a dedicated AI assistant called Aya. The initial use case focuses on travel insurance. Users will be able to describe their trip and needs in natural language. At the same time, the assistant identifies the requirements, proposes a suitable solution, explains the terms and guides the client through the purchasing process. We plan to extend this approach to other insurance products in the future.

Another potential application involves processing documents, preparing data for risk assessment and tailoring questionnaires to a client’s specific situation. In this context, AI can handle a significant portion of routine tasks, freeing up specialists to focus on more complex cases that require professional expertise.

Our goal is to minimize the time between a client’s initial contact and the actual payout, while also reducing the number of steps the client has to take personally. Online claim submission and the automation of specific review stages are already available. The next phase involves deeper integration with medical and other external systems. This will enable faster retrieval and verification of necessary information, reduce the need for repeated document collection and cut down on manual work. At the same time, we are developing AI-driven workflows and fraud detection tools.

The greatest potential for full automation lies in standard cases where structured, verified data is sufficient. For example, if information is missing, circumstances require further analysis and a professional medical assessment is needed, specialist involvement remains essential. However, we do not pursue automation for its own sake. We measure success based on the total time elapsed from the client’s initial contact to the payout. Of course, we can significantly accelerate specific internal processes, but the client sees real benefit only when the overall process is completed faster.

It’s an independent assessment of the company’s financial strength and its ability to meet insurance obligations. Moody’s assigned our company an Insurance Financial Strength Rating (IFSR) of Baa3 with a stable outlook. For a company that manages long-term contracts and assumes obligations extending years into the future, this rating holds practical significance: It gives clients, partners and counterparties an additional independent benchmark for evaluating our reliability.

The rating may also factor into counterparties’ internal requirements and limits, partner selection and risk assessments regarding the company. However, its impact always depends on the specific situation. An investment-grade rating does not, in itself, guarantee automatic access to every financial instrument or lower the cost of raising capital. Therefore, I wouldn’t reduce it merely to a reputational benefit; it also confirms a certain level of financial stability, underpinned by asset quality, capital adequacy, liquidity and the ability to meet long-term obligations.

Yes, if we’re talking about what could happen down the line. Insurance costs could become more personalized, reflecting individual risk levels. This is actually a fascinating prospect. We are developing initiatives such as a unified client profile and more precise risk assessment based on medical, socio-demographic and other relevant data. This could potentially enable us to offer not just customized terms, but fully personalized product offerings. We view this as an opportunity to better account for the needs and risks of the individual, rather than as a reason to make insurance products less clear or transparent. This is where the value of the ecosystem comes into play. It allows for a better understanding of a person's life circumstances and the provision of more suitable protection.

It should become a market where clear, accessible programs help people protect their families and realize their life goals.

Our work combines insurance expertise, customer service, technology, as well as actuarial and investment analytics. For a customer to experience a simple, streamlined process, specialists with diverse skill sets must work in concert within the company. Consequently, technological and analytical competencies have become increasingly important in recent years. We are strengthening our data capabilities, analytics, digital development and product teams, while investing in employee training and process automation.

This doesn’t mean that traditional insurance expertise is becoming less important. It’s actually the other way around: Technology allows us to apply that expertise more precisely and rapidly. Therefore, I would describe the primary shift not merely as the growth of specific departments, but as a closer integration of insurance, technological, product and analytical expertise.

Looking ahead, we aim to move toward a full-fledged “Insurtech” model where the insurance product is conceived as a digital service from the outset, and technology, data and analytics are embedded into every stage of operations – from product development and risk assessment to sales, customer support and claims payouts.

The biggest challenge lies in finding the right mix of skills. In life insurance, one must understand long-term obligations, work effectively with data and understand the impact a decision will have on the customer. That is why actuaries, data analysts and digital insurance product specialists must work at the intersection of these disciplines. A shortage of such skills can slow down the launch of new products and services.

However, this demand cannot be met solely by hiring ready-made talent from the market. It is crucial to develop our own team by training employees, assigning them new tasks and helping them broaden their professional horizons. For the industry to continue growing, the ability to develop people will be just as important as the availability of technology.

I view our social mission as helping people take a conscious approach to their future. And this goes beyond just finances; it is a broader perspective. Education, health, physical activity and culture – all of these shape the quality of life for individuals and their families in the long run.

Of course, we track metrics like participant numbers and the reach of these projects. However, I consider the changes they leave behind to be the most important outcomes: A child gains a fundamental understanding of finance, a family develops the habit of planning, an individual begins to prioritize their health, and a talented author keeps working on their projects. This is precisely the kind of long-term impact we value the most.

I would say it was a deliberate move. What attracted me to life insurance was the opportunity to combine financial expertise with very tangible human goals. Behind the calculations, investment strategies and long-term obligations, there is always a specific objective – such as funding a child’s education, securing financial protection for one’s family or ensuring future income. I find it rewarding to create tools that help people realize these plans and maintain financial stability should circumstances change.

A business like this certainly compels you to pay close attention to the consequences of today’s decisions. The obligations a company undertakes now will have to be fulfilled decades down the line. Consequently, you get used to thinking long-term, considering various scenarios and maintaining resilience amid changing circumstances.

That approach resonates with me, though I don’t believe it’s possible to map out everything twenty or thirty years in advance. Any long-term plan needs to remain flexible. Circumstances shift, and new goals and priorities emerge, so financial strategies require periodic review. For me, mindful planning isn’t about trying to predict one’s entire life; it’s about being ready to take action today that will create greater opportunity and stability for the future.

For me, a good break is an opportunity to shift my focus and step away from the constant stream of work-related decisions. It's important to slow down occasionally, clear my mind of current tasks and experience a different rhythm. That allows me to return to work with a clearer perspective. I believe that the ability to recover is just as essential for the long haul as discipline and dedication to one’s work.

Sports play a significant role in my life. I swim, go to the gym and enjoy cycling. For me, this isn’t just a way to stay in good physical shape; it’s also an opportunity to switch gears, step away from work tasks, recharge and reset.

At the same time, I am convinced that sports cultivate not only physical qualities but also discipline, patience and the ability to make steady progress toward a goal. After all, in any sport, you can’t achieve significant results in a single workout. Real progress comes from small, consistent efforts that yield tangible results over time. This philosophy resonates with me because it applies not only in the realm of sports but also in work, business and life in general.

I would look for a pursuit that allows me to create something useful, learn constantly and see the results of my work. I would be drawn to challenges that require untangling a complex situation, finding a solution and making it understandable to others. The opportunity to unite people around such an endeavor would matter more to me than the job title itself.