GWP of mandatory classes increased by 9.3% to KZT 90.6 billion, GWP of voluntary personal insurance went up by 23.8% to KZT 103.9 billion. Voluntary property insurance recorded significant growth by 57.7% to KZT 28.5 billion. Total GWP, ceded in reinsurance, decreased by 32.3% to KZT 74.2 billion. Amount of net premiums went up by 20.4% to KZT 243.5 billion.
The market concentration continues - the share of 6 biggest insurers in total market paid claims increased to 57.2% (vs 48.4% a year ago), while their share in the market GWP is of about 65%..
From January 1, 2019 clients of insurance companies will be able to conclude insurance agreements online, in electronic form. The possibility of issuing e-policies will be introduced both for mandatory and voluntary insurance. Online insurance will let insurers to reduce the cost of insurance, clients - to buy policies directly via internet-resources of insurance companies without visiting their offices or intermediaries, as well as accelerate receipt of indemnity payments. According to the regulator this will significantly improve the market development and decrease the level of insurance fraud.
Assets of insurers as of the end of October amounted to KZT 990.4 billion, thus increased by 7% from January. KHALYK-Kazakhinstrakh is still the market leader in terms of assets growth, its assets going up by KZT 40.4 billion from the beginning of the year. Total insurance reserves in October increased by KZT 5.4 billion and amounted to KZT 475.4 billion, and their increase from January to October amounted to KZT 14.8 billion (+3.2%). At that insurance reserves account for 90% of all insurers' obligations. Equity of the insurance sector increased by 12.2% year-to-date to KZT 462 billion, while charter capital went up only by 2% to KZT 228.8 billion. The leader in terms of equity growth is EURASIA (+30.3% year-to-date, to KZT 142.5 billion).
Based on 10 months' result, retained earnings of insurance companies amounted to KZT 77.8 billion (61.9% more than profit for the same period last year). Insurance income increased by 4% to KZT 229 billion, while expenses went up by 1.6% to KZT 221.3 billion. Investment income amounted to KZT 76 billion (+48% y-o-y).
Detailed review of the insurance market as of 01.11.2018, prepared by the Association of Financiers of Kazakhstan (AFC), is available here (in Russian only)