KURMANOV, NBRK: Accession to the Green Card system and several regulatory changes to be expected in the Kazakh market
Property and liability insurance segments were the growth drivers in 2016, the market watchdog's representative said, also stressing out that the market is still underdeveloped, with an insurance density of only USD 60 and a penetration degree in GDP of less than 1%. At the end of 2016, Kazakh insurers' assets reached at KZT (Tenge) 1 billion.
"There are 32 active insurers on the market, 7 of them with foreign shareholders, 25 companies forming the non-life market. Besides the insurers' own sales force, insurance distribution services are provided by 15 brokers and 10.000 agents", KURMANOV said.
As for the future, "Kazakhstan intends to develop the collaboration on reinsurance with RNRC and Belarus Re, while on the direct insurance segment the priorities for 2017 are online sales, building a proper market infrastructure and new mandatory classes, including the accession to the Green Card system," stated Zhanat KURMANOV at the XIth International Conference Insurance in Central Asia.
Kazakh insurers have faced a challenging business environment in 2016, both because of constrained economic conditions in Kazakhstan and the tightening regulatory framework. According to a recent statement of the market supervisor, "insurance company mergers are to be expected after the requirements were raised for their authorised capital". Important changes are to be expected also in the motor insurance regulations.