KAZAKHSTAN: GWP decrease of 1.2% y-o-y for Jan-Aug, while paid claims went up by 5.6%
In terms of insurance types, statistical data show that Motor Hull premiums of banking insurers increased by 17.1%, and of non-banking insurers by 19.1%. Property insurance premiums decreased by 17.9% to KZT 54 billion (~EUR 0.13 billion). As Chairman of the Board of KOMMESK-mir, Oleg KHANIN pointed out that over the last years voluntary health insurance has been showing stable growth. This year its GWP exceeded KZT 21.5 billion (~EUR 0.05 billion).
In terms of paid claims, compulsory insurance exceeded KZT 19.2 billion/~EUR 0.045 billion (- 5.5% y-o-y), voluntary personal insurance paid claims amounted to KZT 20.6 billion/~EUR 0.048 billion (-7.2%), and voluntary property insurance claims amounted to KZT 22 billion/~EUR 0.052 billion (+37.7%). Non-life paid claims exceeded KZT 46.7 billion/~EUR 0.11 billion (+ 6.9%).
As of September 1, 2018, the local market was made up of 32 insurers. This year the market saw many changes related to mergers and consolidation. According to the Chairman of the Board of AMANAT, Ergali BEGIMBETOV, this trend will lead to a more extensive reduction in the number of companies next year. "For the Kazakh market, 10-15 insurers are more than enough. Still I would like to note that the market is dominated by insurance companies representing financial industrial groups," said BEGIMBETOV.
The local market is highly concentrated. The TOP-10 insurers own 62.3% of total GWP. Moreover, as BEGIMBETOV explained, the forthcoming introduction of online insurance will also change the positions of market players, because it will allow the promotion of new insurance products, which may become new drivers of the market development.
*EUR 1 = KZT 424.16 (31.08.2018)