At the same time, the IMF pays special attention to growing risks that can slow down the economic momentum. One of the main challenges is a possible slowdown of implementation of large infrastructure projects, which can lead to a decrease in business activity, increased uncertainty in the private sector, and deterioration in the investment climate. In the context of insurance business, this means potential reduction in demand for corporate insurance, especially related to construction, installation and engineering risks.
Another significant factor is inflationary pressure. In April of this year, inflation accelerated, according to the IMF, in 2025 it will remain at 10.5%. In such conditions, the regulator will maintain a restrictive monetary policy, which may limit consumer and investment activity. This, in turn, will affect the life insurance market and retail insurance products, which are closely related to income of the population.
Particular attention is paid to external economic instability. Against the backdrop of growing trade protectionism and unstable oil prices, Kazakhstan is vulnerable to external shocks. A slowdown in growth in key trading partner countries such as China and Russia could negatively affect exports, employment and budget revenues. For the insurance industry, this may mean an increase in losses in credit insurance, cargo and liability insurance.
The IMF separately noted active growth of consumer lending, which entails potential risks to financial stability. In this regard, the steps taken by the Kazakh regulator to tighten macroprudential policy are assessed positively. For the insurance sector, this means increased regulatory oversight and a possible increase in solvency requirements, Allinsurance.kz added.
275 views
