A report from Timetric showed premiums in the Kazakh insurance industry have almost doubled from 2009 to 2012 boosted by compulsory insurance categories and new product developments.
This trend is expected to continue over the forecast period to 2017, supported by new compulsory product developments. The industry is projected to increase at a compound annual growth rate of 16%, increasing from KZT191.3bn (US$1.3bn) in 2012 to KZT402.3bn (US$2.7bn) in 2017.
The report also found property insurance accounted for 40.3% of total non-life gross written premiums in 2012.
According to Sergei Lavrentyev, a member of the Kazakh Association of Insurers, Kazakhstan is prone to natural disasters, which tend to increase the sales of property insurance.
He said: "Seven regions of Kazakhstan are situated in high earthquake activity zones. Additionally, we have regions which regularly suffer from floods. Insurance companies register an increase in sales of voluntary property insurance after the occurrence of earthquakes in the country".
Compulsory insurance categories such as motor third-party, agriculture and property damage insurance will help keep the growth stable. New product development such as compulsory health and natural disaster insurance will also support the expansion of the insurance industry.
Proposals to make health insurance mandatory were submitted to the Kazakh government in June 2012. Current voluntary health insurance policies are unpopular due to high costs.
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KAZAKHSTAN: Natural disasters increase demand for property insurance