Assets of insurers in March increased by 6.9% compared to the same period a year before. From the beginning of 2018 insurers increased total assets by KZT 12.2 billion (EUR 31.1 million). According to Finprom.kz during the last 5 years insurers' assets jumped by 95.7%, premiums - by 136.9%, total equity - by 69.4%. Of 32 insurers, making the Kazakh market, 5 biggest companies own 54.7% of all assets. Maximal growth of assets in March was recorded by KOMMESK-OMIR, which multiplied its assets by 30.2% compared to the same period a year before, followed by HALYK-Life (28.5%), TSESNA GARANT (25.7%), InterTeach (24.1%) and NOMAD Life (23.2%).
GWP is growing every year. Over the last 4 years GWP increased by 60.2%. Paid claims on the contrary show a continuous declining trend. In March claims share in total GWP amounted to 24.1%, in 2017 the level was 28.6%, and in March of 2016 - 33.5%. This means continuous decrease of insurance events.
The Chairman of KOMMESK-OMIR, Oleg KHANIN believes that the market in 2018 will increase in total by 10%. "All companies ended the 1st quarter with more or less good results. Premiums grow in various segments, in 2017 we did not see such kind of growth, - said Oleg KHANIN (as informed by INTERFAX-Kazakhstan).
According to Oleg KHANIN the main drivers of the market in 2018 will be life insurance, GTPL and preparation for introduction of compulsory health insurance which will come into force on January 1, 2019. "One of the trends is liability insurance. More and more companies, including shopping centers (especially now, after the Kemerovo tragedy) are applying for third party liability insurance (customers, tenants), and tenants insure liability to clients and shopping centers", - said Oleg KHANIN. He also thinks that the life market is recovering as an alternative to foreign-currency deposits. "There are life insurance products with rate of return 3.2%, and foreign-currency deposits offer only 1%. Life insurers invest heavily in marketing attracting clients.....Another trend is development of combination of voluntary and compulsory insurance blocks due to introduction of compulsory social health insurance from January 1, 2019," - he added.
The Chairman of the Association of Kazakh Insurers Vitaly VEREVKIN is less optimistic in his forecasts for the local insurance market. He assumes that "the market will not exercise any boosting growth; most probably it will grow by 3-5%. Liability insurance may become the market driver but not in 2018", - as he told INTERFAX-Kazakhstan.
* 1 EUR = 392.32 KZT as of 31.03.2018
1 EUR = 337.96 KZT as of 31.03.2017
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