KAZAKHSTAN: new edition of the Concept of the financial sector's development until 2030 to be adopted before July 1

6 February 2020 — Marina MAGNAVAL
Kazakhstan's insurance market is showing positive growth dynamics: assets in 2019 increased by 15%, to KZT 1.2 trillion, liabilities - by 13%, up to KZT 653 billion (which is 54% of the total assets), equity increased by 8%, to KZT 553 billion, as Madina ABYLKASYMOVA, the Chairman of the Agency of Kazakhstan for regulation and development of the financial market stated.

According to her, the regulator needs to develop a comprehensive document on the financial sector's development and updated Concept for the market development until 2030, which will also include insurance.

Among the current problems, insurance market participants point out to the urgent need to develop new business lines, the low protection level of the population and businesses with insurance products, the low level of public awareness over insurance products, the lack of economic incentives and opportunities for the development of universal life insurance and difficulties in active development of online services.

As ABYLKASYMOVA explained, in order to realize the market potential, the regulator and market participants should work together to develop infrastructure and launch new financial technologies into insurance services. To ensure systemic stability of the financial sector, from 2020 a risk-oriented supervision will be introduced in the banking and insurance sectors.

"In regards to the new tasks, set by the Head of the state for integrated development of the entire financial market, the Agency will update and adopt the Concept on the development of the financial sector until 2030 in its new edition before July 1 this year", Madina ABYLKASYMOVA, Chairman of the Agency, said.

Oleg KHANIN, the Chairman of the Board of Kommesk-Omir, estimates the market performance in 2019 as positive. Online insurance, introduced more than a year ago for such a popular product as MTPL, has achieved good results and further development of online insurance is planned in voluntary types, in particular, in travel insurance and property.

Also, according to KHANIN, it is planned to create the conditions for development and popularization of new innovative products of universal life insurance to help life insurers decrease their high dependence on the banking sales channel.

*1 EUR = 426.85 KZT (December 31st, 2019)

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