Due to the devaluation of the local currency (KZT) operated at the beginning of February last year by the National Bank of the Republic of Kazakhstan and the depreciation of the national currency compared with Euro, the insurance market recorded a decline of 9.33% in European currency.
Another factor that influenced the work of insurers was due to the fact that in June 12, 2013, insurers were banned from signing pension annuity contracts. Despite the fact that the interdiction was removed in May 2014, the number of contracts has gone down compared with the same period of 2013. At the end of 2014, the life insurance segment decreased by 16.95%, to KZT 46.9 billion compared to the 2013 results (KZT 56.5 billion).
Also, the other negative factor is that the number of insurance companies affiliated with banks stopped insuring loan borrowers against accidents. According to Oleg KHANIN, Chairman of Board, Insurance Company KOMMESK Omir, quoted by KAZAKH TV: "In order to reduce the rate on the loans, the banks now decided to abandon credit market. Insurers are actively developing voluntary insurance. Competition forces them to work on the quality of services and improve their marketing tools. This especially concerns health insurance. Many employers offer health insurances within social packages to attract and retain employees. All of these are now popular".
The value of paid claims was up 15.49% y-o-y to KZT 70.9 billion (or EUR 319 million).
Access www.xprimm.com and download the FY2014 Kazakh insurance market statistics.
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