According to the UAPF, for 11 months of last year, 22.2 billion (14% of the pension fund’s total payments) of pension savings were transferred to insurance organizations.
“It is not much, but the market is gradually developing, which has also allowed life insurance companies to stay afloat for several years,” stated Vitaly Lyubimov, the Managing Director of Halyk-Life JSC.
“I agree that annuities grow slowly. Now men can transfer savings to an insurance company, having 10 million tenge on the account, and women - 12 million. Over the 20 years of the pension system, the amounts are quite small,” says Askar Shakenov, the Deputy Chairman of the Board of Nomad Life Insurance Company.
Insurers explain the small amount of payments by inconvenient administration that should be changed as well soon. “The procedures are to be facilitated and transferred into digital format. A person can change the insurance company every 2 years, but for this he is obliged to come to the office, write a statement, enter into a contract; now everything will be in electronic form. Fill out the forms on the websites and your money is starting to work,” said Lyubimov.
The total amount of pension payments from the UAPF for an incomplete year amounted to about 156 billion tenge, where 32 billion tenge (or 20%) are payments made due to leaving the country in favor of permanent residence outside Kazakhstan.
“Another thing that dissuaded from this type of insurance was the law regulation that did not allow people traveling abroad to receive money from the insurance company. Now, there is a bill regulation that allows it to be done, and people are confident that when they go abroad they will get everything in full,” noted the Managing Director of Halyk-Life JSC.
According to rumors on the financial market in November and December, the life-companies were able to manage pension assets like pension asset management companies. Let us remind you, that last March, Aviva Investors, the largest investment company in the world, began managing the UAPF’s $220 million. Later, the supervisor announced several tenders for similar structures’ search.
"We sent investment proposals to the National Bank with a request of investment possibility consideration. However, the decision has not yet been made, so it is early to talk about the transfer of assets from the UAPF to us," Shakenov concluded.
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