KAZAKHSTAN: in 2022, the insurance sector remained stable and saw growth in all key indicators

28 February 2023 —
As of January 1, 2023, the insurance sector's assets amounted to KZT 2.07 trillion (~EUR 4.18 billion), which is 13.01% more y-o-y. Asset-to-GDP ratio remains at 2.04%. Liabilities amounted to KZT 1.29 trillion, having increased by 18.76% since the beginning of 2022, as was noted by the participants of the meeting of the financial regulator with market representatives on February 21, Allinsurance.kz wrote.

The meeting participants discussed priorities of the supervisory policy in the insurance sector for 2023, as well as strategic directions for the development of the system for guaranteeing insurance payments and activities of the insurance ombudsman.

Summing up the results of 2022, the meeting participants noted that, despite serious challenges and external negative factors that had to be faced last year, the insurance sector remained stable and saw growth in all key indicators.

In 2022, adequacy of the obligations, formed by insurance organizations for the class of compulsory insurance of employees against accidents in performance of labor (official) duties, was checked. As a result, until the beginning of 2023, 13 insurance organizations formed additional insurance reserves for making insurance payments for a total amount of KZT 8.7 billion.

In September 2022, legislative amendments came into force that made certain adjustments to the regulatory policy in the insurance sector, including changes to the activities of the Insurance Claims Guarantee Fund and the insurance ombudsman. The Fund received the status of a financial organization, its activities became more transparent, requirements for the risk management system and corporate governance were increased. The Fund's guarantee was expanded to 10 classes of insurance, including all mandatory and socially important ones. Since September 1, 2022, the Fund has been a member of the International Forum of Insurance Guarantee Schemes (IFIGS), which will allow the Fund to implement the best international practices in its business processes.

Since 2024, the legislation provides for introduction of mandatory pre-trial settlement of disputes. Appeal to the ombudsman will be a necessary step before filing complaints with the court against actions of insurance companies.

In 2023, the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market will continue to improve the supervisory stress testing of insurance companies, further introduce elements of Solvency II, develop elements of a behavioral risk profile, as important components of risk-based supervision. At the same time, the Agency will continue to work on digitalization of the insurance market in accordance with the Concept for development of financial technologies and innovations for 2020-2025.

In 2023, preparations will be made for introduction of online settlement of insured events for all compulsory types of insurance and a simplified settlement of insured events for compulsory motor insurance (European Accident Statement), according to the press release.

*EUR 1 = KZT 494.10 (31.12.2022)



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