KAZAKHSTAN: for the Q1 property insurance dropped by 11%

29 May 2018 —
Property insurance in Kazakhstan is accelerating rates of decline. During the Q1 the class generated premiums 11% less than a year ago. At that during the Q1 2017 this class decreased by 4%, as informed analytical service Finprom.kz.

Paid claims of the class also decreased. During 3 months in 2018 claims amounted to KZT 5.3 billion (while the quarter premiums amounted to KZT 52.3 billion), which is 21.4% less than a year ago. For this moment the share of the voluntary property class in the local portfolio is around 50%, but its share is decreasing (in 2016 is was 50.4%, in 2017 - 46.5%), according to media site Allinsurance.kz.

Specialists believe that during the last 2 years the local insurance sector's penetration degree is running down. In 2015 its share in GDP was 2%, in 2016 and 2017 - already 1.8%. Average insurance density in the country is KZT 20 thousand including compulsory and voluntary classes. As the main reason analytics consider absence of reasonable information about risks and motivation in the voluntary segment, wrote the media site.

The compulsory segment has an opposite trend. In Q1 2018 its premiums jumped by 25.8% compared to the Q1 2017 and amounted to KZT 26 billion. Finprom.kz assumes that the local market is experiencing high pressure on behalf of the regulator and is under effect of introduction of new supervisory tools. That also led to reduction of the insurers' net profit last year from KZT 68.2 billion to KZT 57.4 billion (by 15.9%).

As of 01.04.2018 the Kazakh insurance market is represented by 32 re/insurance companies.

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