KAZAKHSTAN: as of December 1, 2018 insurers' assets exceeded KZT 1 trillion while total market GWP dropped by 5.7%
However, against the assets' growth, GWP in general for January-November 2018 decreased by 5.7% y-o-y. At that shares of non-life and life sectors changed as well: non-life GWP dropped by 9.3%, but life GWP went up by 14.5%. Although at the same time, the share of life insurers in the market profit structure declined significantly (16.6% vs 23.7% a year ago).
Despite the annual decline of total GWP, net amount of premiums (net retained) went up by 8.4%. The share of life insurers in the net premium portfolio increased up to 37%, while their share in net expenses for insurance payments decreased from 23.3% to 17.3%. The share of non-life insurers in net paid claims is much higher - their net paid claims amounted to 36.8% of net premiums, while life insurers paid only 13.1% of their net premiums.
The market specialists believe that non-life sector is demonstrating the decline, which hasn't been seen since 2008-2009. At that the main reason, according to them, is about recent multiple regulation changes, due to which many leading insurance classes showed negative trends. For example, since July 2018 non-life insurers are not allowed to perform any activity in compulsory accident insurance of employees, thus premiums of this class dropped by 37.7% y-o-y. Voluntary cargo insurance decreased by 50.2% as well, voluntary property insurance - by 9%, and the volume of voluntary civil liability insurance went down by 35.9%, as the data, published by the regulator for 11 months of 2018, show.
*EUR 1 = KZT 422.43 (01.12.2018)