As of early 2024, the assets of insurance organizations are 2.49 trillion tenge, having increased by 20.7% over the year. The liabilities have grown to 1.59 trillion tenge, which is 23.2% higher than last year. The amount of insurance premiums reached 1 trillion tenge. The insurance payments for 2023 came to 274 billion tenge increasing by 43.7% compared to last year.
Using the SRES (Supervisory risk evaluation system) methodology, which includes qualitative and quantitative risk assessment, the regulator has established the level of supervisory attention in relation to insurance organizations. In particular, 2 insurance organizations are subject to extreme supervision, 3 - intensive supervision, 7 - detailed supervision, 5 - supervision, 8 - standard supervision.
Based on this assessment, the type and intensity of supervision of insurance organizations will be determined in 2024. The supervisory process will actively use the results of consideration of complaints and appeals from insurance consumers received by the insurance ombudsman and the agency, as well as methods of collecting data from open sources (Open Source Intelligence), including analysis of the judicial office, reviews of policyholders and news portals.
In 2024, the ARDFM will continue to improve the model of risk-based supervision with an emphasis on the behavioral components of the activities of insurance market participants. This will ensure proper control over various aspects of their activities, including relationships with clients, counterparties and competitors.
To ensure the financial stability of insurance organizations, the agency will continue to systematically work on implementation of the international standard Solvency II. It is planned to conduct test calculations to develop new capital requirements (SCR) and own funds of insurance organizations.
Control over financial reporting in accordance with IFRS 17 is also a priority of the agency’s supervisory policy. Insurers’ financial reporting in accordance with IFRS 17 is currently not automated, and the implementation of individual IT solutions is costly. Therefore, the Agency, together with insurance organizations will consider the possibility of introducing a unified automated system in accordance with IFRS 17 this year, which would include, among other things, cloud computing for modeling and calculating a set of indicators necessary to meet the requirements of IFRS 17.
This will ease the financial burden on each market participant and ensure transparency and reliability of financial reporting. Digitalization of the insurance sector continues to be a top priority for the regulator.
Since 2024, online settlement of insurance claims for all compulsory classes of insurance and a simplified procedure for settlement of insurance claims for compulsory motor insurance (European Accident Statement) will be introduced.
The consumer can submit a claim and documents to receive insurance benefits through the insurance organization’s website without visiting the office. All stages of the insurance claim settlement process, from application to payment, are reflected in the client’s personal account and recorded in the Unified Insurance Database.
Together with market participants the agency will consider options for creating electronic platforms (marketplace) to offer consumers the full range of insurance services in 2024. This will increase customer awareness of the offers by insurance organizations and will allow insurance organizations to consider the individual interests of clients when developing insurance products.
Photos are from open sources.
