Fitch Ratings says that bancassurance has been the key driver of growth in the Kazakh insurance sector in recent years. Prospects for sustained profitability of the bancassurance model will depend on the quality of regulation and further growth in consumer lending. The Kazakh bancassurance model generates strong profitability for insurers through a low loss ratio. However, Fitch's analysis indicates that bancassurance profits are increasingly repatriated to shareholders rather than being retained within the Kazakh insurance sector. Profitability of the insurance sector has been strong but the underwriting result is significantly concentrated among a few of the largest players in the sector. In Fitch's view this reflects a limited level of competition in the Kazakh insurance sector.
Read the full story
FITCH: Bancassurance drives KAZAKH insurance growth