KAZAKHSTAN: S&P: life insurance may increase 15-20% in 2019

18 April 2019 —
"Life insurance in Kazakhstan may grow by 15-20% in 2019, while non-life may remain at the level of 2018, or even decrease in real terms," S&P believes, according to Ekaterina TOLSTOVA, deputy director of the international rating agency.

At the international conference, dedicated to the insurance in Central Asia, held in April in Kazakhstan, Ekaterina TOLSTOVA noted that a slowdown of the growth rates in non-life insurance is mainly based on the non-diversification of the local economy and its focus on the oil sector. At the same time, the main part of the non-life market is growing, thanks to motor insurance, and there are not so many growth points, which mostly are short-term, she explained.

According to Oleg KHANIN, the Chairman of the Board of Kommesk, the emphasis is shifting to the corporate business (cargo and property) in insurance. He noted great prospects for liability insurance. Another market trend, according to him, is increasing MTPL paid claims, mainly related to higher prices for spare parts and cars. "In 2019, we expect an organic growth of the insurance market, in general, by 10-15%," he said.