STATISTICS: KAZAKHSTAN, 1H2015: Three times faster growth in claims versus premiums

In the first half of 2015 gross written premiums reached KZT 151.4 billion or EUR 731.58 billion. Figures denominated in local currency show a growth rate of 4.69%, while in the European currency insurance business increased by 26.41% due to revaluation of KZT against foreign currency.

Concurrently, paid claims went up by 13.5%, to KZT 38.8 billion, mostly due to much higher claims recorded on the property and motor insurance lines. In fact, the three times faster growth in claims compared with premiums seems to make the most significant market trend, rising to some extent insurers' concern. Local experts hope that the trend "will not be long-lived, although probably it will continue also in the second half of this year". However, beside the legitimate concerns for the costs escalation, insurers are also seeing a good side in the long term, as "clients that received timely payments begin to understand the benefits of insurance and will continue to use more actively the services of insurance companies."

The imminent changes to the pension system announced in 2014, providing for the legal ban for insurers to conclude pension annuity contracts significantly affected the life insurance market last year. In the first half of 2015, the interdiction was revoked which resulted in 33.54% increase of the annuity GWP which became the main driver of the life insurance segment growth.

Access www.xprimm.com and download the 1H2015 Kazakh insurance market statistics.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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