UPDATE: KAZAKHSTAN, FY2016: Market return to growth, up by 24%; statistical sheet now available

2 February 2017 — Olesea ADONEV
FY2016 saw a spectacular GWP boost in the Kazakh market, by 24%, as compared with FY2015 when insurers struggled to return on the growth path, achieving a 8% growth after the fall of 4.64% seen in FY2014.

By insurance lines, to the positive evolution have contributed MTPL (+23%), property insurance (+24%), voluntary insurance of civil liability (+88%), compulsory insurance of worker against accidents (+27%), sickness (+11%).

In the analyzing period, a tendency of claims growth by 17% was maintained, especially because of the increase in compensations paid on motor insurance segment: MTPL (+25%) and Motor Hull (+19%). Among the main reasons of the trend there are: increase of spare parts and repairs costs, as a result of the currency depreciation -, and a significant increase in the number of insurance fraud cases (note: security experts said about 60% of all cases of fraud have been caused by insurance agents and professional fraudsters).

Moreover, following a Central Bank of Kazakhstan decision, independent evaluators of road accidents were no longer allowed to settle road accident claims, this function being exclusive entrusted to insurance companies. Another legislative change adopted by the authority was the implementation of the an unique methodology for assessing motor claims, aimed to eliminate the inconsistencies occuring between the assessments made by insurers, clients and independent evaluators and subsequent disputes.

In 2017, introduction of e-MTPL is expected to contribute to the digital technology and IT-infrastructure of motor insurance business development in Kazakhstan. In the opinion of the Kommesk-Omir representatives, in such case insurers' efforts will be redirected towards modernizing existing systems and automation of business processes, by developing websites which will offer online services, as well as mobile applications.

Access www.xprimm.com and download the FY2016 Kazakh insurance market statistics.

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