KAZAKHSTAN: in 2021, the insurance sector saw a recovery growth in all key parameters

25 January 2022 — Marina MAGNAVAL
According to the National Bank, as of December 1, 2021, there were 27 insurance (reinsurance) organizations operating in Kazakhstan, their total assets amounted to almost KZT 1.78 trillion/EUR 3.60 billion*. GWP collected as of this date amounted to KZT 725 billion, liabilities - approximately KZT 1.05 trillion (including KZT 871.26 billion of insurance reserves), Allinsurance.kz writes citing inbusiness.kz.

"In 2021, the insurance sector adapted to the new reality and saw a recovery growth in all key parameters, except for paid claims and profitability. At the end of 10 months of 2021, GWP exceeded KZT 569.1 billion, which is 37% more compared to the same period in 2020", says Oleg KHANIN, Chairman of the Board of Kommesk-Omir.

He noted that life insurance was the growth leader, which GWP as of November 1, 2021, amounted to KZT 238.4 billion (+54.1%). The share of life insurance in total market portfolio for 10 months of 2021 amounted to 41.9% vs 37.2% a year earlier. Oleg KHANIN emphasized that the main trend is digitalization, adaptation of digital technologies to insurance services is being actively promoted, online sales of insurance products are growing.

The chairman of the board of Kommesk-Omir said that in 2022, life insurance is expected to grow, associated with provision of tax incentives, introduction of new life insurance products with an investment component and imputed insurance products as a tool for ensuring liability. It is planned to transfer the process of receiving insurance payments to an electronic format, as well as introduce flexible tariffs, considering regional statistics, on the most massive insurance type - MTPL.

Speaking about the preliminary results of 2021 and plans for 2022, Dauren IMANZHANOV, Chairman of the Board of NOMAD Insurance, noted: "The insurance sector grew in 2021, and the market performance turned out to be significantly better than in 2020 in terms of GWP volume. The market portfolio, taking paid claims into account, is profitable. Opening of borders positively affected compulsory travel insurance. In terms of legislation, several projects were prepared in 2021 to amend operation of the insurance market.... From 2022, it is planned to introduce mandatory pre-trial settlement of disputes by the insurance ombudsman... Also, from January 1, 2022, information not only on mandatory, but also on voluntary insurance classes will be transferred to the unified insurance database. This innovation will give impetus to a large-scale modernization and development of the unified insurance database functionality. In general, such changes will help accelerate digitalization of the country's insurance market, and Kazakhstanis will be able to receive an even greater range of services online", he explained.

* EUR 1 = KZT 493.29 (01.12.2021)

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