KAZAKHSTAN: new benchmarks for market development to make competition more transparent and fairer

11 January 2021 — Marina MAGNAVAL
In 2021, development of the insurance market in Kazakhstan will follow the benchmarks formed by the pandemic - among them active development of online insurance, infrastructure, and digital marketing. "This will help to make competition between companies more transparent and fairer", said Anna NEKRYUKOVA, Deputy Chairman of the Board of Amanat for Kapital.kz.

The market will continue to simplify terms and conditions of insurance so that customers can independently understand details of insurance products and decide to buy, which, according to NEKRYUKOVA, is important to increase the demand for voluntary insurance. "Today it is difficult to make forecasts regarding the market's development for 2021. But in fact, it was the current epidemiological situation and the self-isolation regime that in 2020 dictated the sales rules for all types of insurance", said Shakir IMINOV, Executive Director of EURASIA. In his opinion, the pandemic has changed all sales channels and much depends now on how insurance can integrate with other types of financial services. Experts believe that the number of types of online policies will grow, even in corporate insurance.

In addition, market participants expect a positive result from the draft Law "On amendments and additions to certain legislative acts of the Republic of Kazakhstan on regulation and development of the Insurance and Securities Market", which provides for improvement of compulsory insurance of civil liability of vehicle owners. It is assumed that the model of recalculation of insurance rates will be revised with establishment of more flexible rates in the regional context, and a loss-making threshold for regions is envisaged with an adjustment to the base rate. Anna NEKRYUKOVA considers it necessary to change the pricing policy and adjustment factors in the regional context, since unprofitability in the segment has grown in recent years.

In 2021, intensification of foreign insurers' activity in the local market is unlikely, which, according to the experts, is due to relatively low demand for voluntary insurance types and the consequences of the pandemic. "The Kazakhstani market is small, and there is a stable demand only for compulsory types of insurance. At the same time, Kazakhstani companies, having all necessary tools, have long learned to operate effectively in local realities", Anna NEKRYUKOVA emphasized.

Source: Kapital.kz



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