This is stated in the AM Best report “Kazakhstan Insurance Ratings: Benchmarking” with a benchmarking analysis of the insurance market in Kazakhstan. According to agency experts, the conditions for operations continue to be difficult due to the slowdown in economic growth and changing regulatory standards.
In the non-life insurance sector, competition is quite high, despite the reduction in the number of companies after mergers and acquisitions or the withdrawal of some insurers from the insurance business. As Yugeny Asatryan, a senior financial analyst, noted, “Insurance market consolidation occurred mainly due to mergers and acquisitions in the banking sector. In addition, in 2019 the National Bank of Kazakhstan revoked the licenses of two companies not related to life insurance citing non-compliance with regulatory requirements."
According to AM Best analysts, the observed processes in the future may have a positive impact on the operating environment of the insurance market in general.
AM Best notes that the compliance risk for insurers in Kazakhstan remains high, since the regulatory framework is constantly changing due to the need to improve it. Besides, the Kazakhstani insurance market is relatively young, they add.
Photos are from open sources.