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How the Insurers’ Benefits Affect Their Business

Due to the coronavirus pandemic and quarantine in most cities of the country, the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations introduced more favorable requirements to insurers. The details about new rules and how they influence the insurance business are in this material.
How the Insurers’ Benefits Affect Their Business

Due to the imposition of the state of emergency, financial supervision allowed insurance companies to delay their report submission. In order to maintain liquidity and insurance market stability, the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations changed the requirements for securities purchased by insurers from March 30 to September 30.

“As of April 1, the volume of insurance premiums increased by 34.4% compared with the same index one year earlier and amounted to 148.1 million tenge. The major share of insurance premiums is voluntary property insurance - 74.2 million tenge,” the financial supervision press service informed.

The total amount of insurance payments (excluding insurance payments under reinsurance agreements) made since the beginning of 2020 amounted to 66.5 million tenge. This is 153.6% more than in the first quarter of last year.

“Of the total amount of insurance payments made since the beginning of 2020, insurance payments for voluntary property insurance account for 69.8%, voluntary personal insurance - 16.1%, and mandatory insurance - 14.1%," the Agency specified.

According to the agency, most of insurers did not violate prudential standards. The only exception was JSC Grain Insurance Company, which the regulator suspended for non-compliance with the requirements in February for six months.

Life Insurance Companies

The life insurance sector has shown an increase in premium income. The volume of insurance premiums collected by life insurance companies since the beginning of the year amounted to 42.8 million tenge, 45.9% more than for the same period last year. “This growth is associated with an increase in the volume of premium income in the life insurance class by 7.4 million tenge or 58.1% compared to April 1, 2019 and by 1.7 million tenge or 20.8% in the annuity insurance class,” the statistics brought by the Agency.

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