The insurance companies’ assets amounted to 1.2 trillion tenge as of end of October, an increase of 18% compared with the same period last year. The role of insurance sector in the economy of Kazakhstan has increased as well. The ratio of insurance assets to GDP as of end of October this year was 1.9% (a year earlier - 1.6%).
There is a significant increase in highly liquid assets. As of late October 2019, the amount reached 897.6 billion tenge, or 76.8% of total assets; an increase from the year beginning was by 16.5%. Twenty seven insurance companies work in the domestic insurance market, 7 of them are life insurance companies. The share of TOP-10 insurance companies in total assets amounted to 83.9%.
The dynamics in the segment of insurance premiums is also positive. As of January-October current year, the insurance premiums have already reached 416.2 billion tenge, 31% more than in the corresponding period last year.
According to the concept of the financial sector development by 2030, the volume of insurance premiums in the market will increase by 2–2.5 times. The premiums will basically increase due to the expansion of coverage of the population with retail voluntary insurance, including cumulative life insurance. By results of ten months this year, the premiums on voluntary personal insurance have increased by 64% up to 170.5 billion tenge, which is 41% of the total premiums.
In general, a full-fledged infrastructure of the national insurance market has formed in Kazakhstan. There is active implementation of international best practices and regulatory standards. The legislative framework improvement and development of the latest types of insurance create the conditions for the competitive insurance market formation.
In order to reduce risks in the insurance sector, the Law of the Republic of Kazakhstan introduced the concept of risk-based supervision of financial institutions. This will allow a timely identification and prevention of risks and deficiencies in the activities of insurance organizations and will provide an opportunity for early intervention and timely supervisory actions to ensure their financial stability, which will create the necessary conditions for further market development.
Photos are from open sources.
