A total of 9,363 claims were filed based on the European Accident Statement in the first 9 months of 2024. Total payments reached KZT 1,480 billion, and the average settlement period was 15 days, the Agency for Regulation and Development of Financial Market of Kazakhstan reported.

Since the beginning of 2024, citizens have the right to file a claim online for mandatory insurance classes, which is the next level of development of the industry digitalization, the regulator emphasized.

Introduction of a simplified procedure of claim settlement for minor accidents (European Accident Statement) has increased the amount of payments made by insurers for compulsory motor insurance.

The limit under the European Accident Statement is set at about KZT 370 thousand, which allows victims to receive payments online in a short time based on photo/video evidence.

The average insurance premium in the country is KZT 15 thousand in 2024, while the amount of payment is up to KZT 2,215,200. The cost of compulsory motor insurance is low compared to other countries. For comparison, the average insurance premium in Russia is RUB 7,300 (KZT 36,500), in Western European countries – EUR 500 (KZT 262,500), in the USA – USD 500 (KZT 243,500).

“Insurance companies do not get profit in this class of insurance. Most of them have a loss ratio of over 90%, some reach 150%-190%. This means that insurance companies pay out more than they collect as insurance premiums”, the Agency noted.

*EUR 1 = KZT 531.50 (02.11.2024)