According to Nurzhan Dzhantureev, an increase in paid claims will affect growth of insurance rates. "As a seller of reinsurance capacity, we record all the "charms" of the hard market period: premiums and franchise sizes are increasing, and alternative capital is gradually leaving the market due to catastrophic losses of previous years and higher rates in other industries", explained Nurzhan Dzhantureev.
He also noted that along with inflation and war in Ukraine, geopolitical risks for Kazakhstan began to increase.
Speaking about the results of 2022 for the insurance sector, Azamat Kerimbayev, Advisor to the Chairman of the Board of Freedom Insurance, noted that in 2022 digitalization in Kazakhstan reached a new level, for the first time in the country insurers offer a subscription to compulsory insurance of civil liability of vehicle owners (MTPL).
The chairman of the board of the life insurance company Kommesk-Omir Oleg Khanin noted that an important innovation for policyholders is the expansion of the list of insurance classes covered by the Insurance Payments Guarantee Fund (FGSV). If before the entry into force of the Law, the FGSV guarantee covered only 5 insurance types, now the number of guaranteed types of insurance has increased to 10. In addition, under the new system, consumers will now be able to receive payments immediately after insurance companies get their license revoked, without waiting for a court decision on liquidation.
Oleg Khanin also said that, starting from 2024, in MTPL such parameters as targeted unprofitability and correction ratios will be used depending on a vehicle's territory of registration. Thus, flexible insurance rates will be applied. In regions with a large unprofitability, tariffs will be higher.
Nurzhan Dzhantureev believes that one of the most important innovations in the insurance sector is introduction of IFRS 17, a new financial reporting standard for insurance companies, which will require introduction of advanced automated solutions, without which it is impossible to calculate projected financial flows for years and decades. He also noted that from 2023 the role of the insurance ombudsman will increase, this institute will become an obligatory authority for resolving disputes between insurers and their clients, and this will reduce the burden on courts and significantly speed up resolution of disputes.
From 2024, agents are also expected to leave the compulsory motor insurance market, which will require all participants to make every effort to develop online motor insurance sales channels, says Nurzhan Dzhantureev, Deputy Chairman of the Management Board of EURASIA.