KAZAKHSTAN: reducing the number of licensed insurers does not impact system stability

From the beginning of the year, selected insurers have forfeited licenses on some insurance activities. SALEM's license for voluntary insurance was cancelled on August 28. Additionally, the license for general insurance of Kompetenz was suspended for 6 months, wrote allinsurance.kz.

The main reason for retraction is usually multiple violations of the prudential regulation requirements. According to insurance ombudsman Andrey KOPOV, if a company fails to fulfill the prescribed measures within a one-month period, its license must be suspended for a period of 3-6 months. At the end of that period, in case of failure to amend all violations, the National Bank makes a ruling on the company's license cancellation. There are other reasons for license suspension as well. The license of NURPOLICY, a subsidiary insurer of Nurbank, was cancelled due to its merger to VICTORY, according to Kapital.kz.

Andrey KOPOV in his turn believes that despite some cases of cancellation and license suspension, the insurance system of Kazakhstan is stable. The law on insurance provides for transition under the National Bank's control of insurance portfolios and liabilities to active insurers. Thus, such cases have no negative consequences for clients.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

KAZAKHSTAN: in 2018 motor insurance generated over 30% of non-life premiums

Based on 2018 result, motor insurance (MTPL and MoD) generated over 30% of non-life GWP. At that, according to the statistics of the National Bank, MTPL segment last year saw a significant concentration growth - TOP-5 generated 66.5% of GWP vs 47.6% in 2017 (total growth of MTPL amounted to 23% y-o-y).

2019-02-07

KAZAKHSTAN: Unit-Linked may become a new market driver

Staring January 1, 2019 Kazakh life insurers may offer Unit-Linked products, charging an insurance fee that will depend on the investment results. Also this year insurance companies may get an investment broker license, as explained the Deputy chairman of the board of Nomad Life, Askar SHAKENOV.

2019-01-25

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all