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Insurance market reforms discussed in Kazakhstan

The Chairman of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDFM) Madina Abylkassymova held a meeting with the participation of CEOs of insurance organizations, the representatives of National Bank and Financial Institutions’ Association of Kazakhstan.
Insurance market reforms discussed in Kazakhstan

The meeting participants discussed the results of the first half of the year and the challenges faced by insurance companies this year. It was noted that the insurance sector managed to maintain financial stability. The solvency ratio for the sector as of July 1 this year was 4.6 with a minimum value of 1, although it decreased compared to the beginning of 2022 under the influence of external shocks.

The assets of insurance organizations for 6 months of 2022 increased by 7.7%, amounting to 2.0 trillion tenge as of July 1, and the volume of insurance premiums grew by 6% amounting to 395 billion tenge.

The innovations to be introduced on the market were discussed during the meeting. Thus, the President of Kazakhstan has recently signed a law that creates conditions for the insurance market’s further development through the introduction of new insurance products, further digitalization of services, improving the quality of consumer rights protection and bringing current legislation in line with best international practices.

In particular, it provides:

  • inclusion of all mandatory and socially significant classes in the list of guaranteed classes of insurance;
  • upward mobility of the insurance ombudsman;
  • introduction of socially important endowment life insurance products;
  • providing citizens with the opportunity to partially return money under retirement annuity agreements back to the UAPF;
  • introduction of online settlement of insured events;
  • introduction of the Europrotocol, which simplifies the processing of insurance payments;
  • transition to flexible pricing in compulsory auto insurance.

Implementation of the law provisions will require preparatory work during this and next year, in terms of improving the technical infrastructure of the industry and developing appropriate software and hardware.

15 normative legal acts have been prepared to implement the law norms on the insurance sector, the adoption of which is planned for September-October this year.

Photos are from open sources.

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