KAZAKHSTAN: New bill concept provides a number of long-awaited changes for the insurance market next year

9 September 2020 — Marina MAGNAVAL
The insurance market regulator came up with an initiative to develop a draft law "on amendments and additions to certain legislative acts of the Republic of Kazakhstan on regulation and development of the insurance market and securities market" in order to update the legislation and make changes on problematic market issues, according to the Association of Financiers of Kazakhstan (AFK).

As Yerlan BURABAEV, the managing director of AFK, noted, insurance legislation was last changed in 2018 (introduction of MTPL e-policy, increase of the limits of payments to victims of road accidents, etc.). Then changes were also expected for life insurers in accumulative and investment insurance but were postponed.

The concept of the new bill, according to BURABAEV, involves the development of the entire insurance market, expansion of insurance products, including life insurance (unit-linked), introduction of deferred and joint pension annuities, involvement of life insurers into the state educational funded system. At the moment, there are some restrictions that reduce the demand for unit-linked, however, planned changes will help improve its flexibility. "We are quite optimistic about this product, but we understand that the development will take time, people need to realize and accept it", said Kairat CHEGEBAYEV, Chairman of the Board of NOMAD Life.

As for non-life, it is planned to change MTPL tariffs, which is the most popular insurance type. Individualization of tariffs will help balance the situation in the context of regions and increase premium growth. It is also planned to introduce the European Accident Statement for development of pre-trial accident settlement. Besides, non-life insurers are interested in the development of imputed insurance within the framework of professional liability. The legislative basement was established back in 2018. This insurance type can cover many types of business activities and is profitable for insurers, as they set their own rates.

The concept of the bill was under consideration from May to mid-June 2020, after that the regulator and market participants came to a compromise and proceeded to the next step of making amendments to the legislation, forbes.kz writes.



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