KYRGYZSTAN: insurance industry is developing, only with difficulty

In May the Association of the Kyrgyz Insurers conducted an annual meeting, dedicated to discussion of the last year result. According to the participants of the meeting in 2017 the local market was developing gradually and the insurance volume growth amounted to 12.5 %.

The participants noted an increase of the shares of liability insurance, compulsory insurance and personal insurance, and a simultaneous decrease of shares of the property class which speaks for the greater market differentiation. Also at the discussion it was pointed out that among other 2017 results a range of private insurance companies were authorized for compulsory home insurance, some progress was achieved in practical realization of the laws on compulsory insurance of passenger carrier liability and dangerous cargo carrier liability, due to those laws had been never implemented since adoption in 2010.

That being said, all the participants were equally of the opinion that the local insurance industry is far behind the global levels. While in developed countries average insurance penetration degrees amount to 7-14% of GDP with insurance density of USD 2000-5000 per capita, in Kyrgyzstan those figures are 0.2% and USD 2.4 accordingly.

In the view of the Association representatives all the local market features reveal rather weak insurance development, necessity and existing possibilities of its development, need to attract additional domestic investment. The Association members set the tasks of intensive explanation to the public, enterprises and businesses about nature and gravity of insurance, including home insurance, MTPL and others, said the Kyrgyz "Vecherniy Bishkek" publishing house.

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