Baku, Azerbaijan, Dec. 18
By Nigar Guliyeva – Trend:
The concept of development of Kazakhstan’s financial sector until 2030 stipulates introduction of the "Solvency II" system for ensuring the sustainability and competitiveness of insurance organizations.
This is stipulated in the Strategic Plan of the National Bank of Kazakhstan for 2017-2021 approved by the Chairman of the National Bank on Dec. 15.
The document notes that the system envisages the implementation of calculating capital of insurance companies to cover each type of risk, taking into account the qualitative parameters of the activities of insurers and supervisory evaluation.
"There will be established quantitative requirements for the amount of equity to ensure solvency and supervisory functions, non-compliance with which will entail the application of appropriate financial recovery measures or sanctions. Measures will be taken to develop and improve internal underwriting systems, risk management, internal control and loss assessment," reads the document.
In addition, to further develop the insurance market electronic sales of insurance policies will be introduced.
The document notes that the on-line sale of insurance products is widespread in foreign markets due to its availability and convenience.
As of Jan.1, 2017, some 32 insurance companies, 15 insurance brokers and 59 actuaries operate in the financial market of Kazakhstan. As of Jan.1, 2016, 33 insurance organizations, 15 insurance brokers and 61 actuaries operated in the financial market of Kazakhstan.
Assets of the insurance sector as of Jan. 1, 2016 amounted to 825.7 billion tenge (an increase of 34.8 percent or 213 billion tenge compared to Jan. 1, 2015) and as of Jan. 1, 2017, 856.5 billion tenge ( an increase of 3.7 percent or 30.8 billion tenge compared to Jan. 1, 2016 ).
The equity capital of the insurance sector as of Jan. 1, 2016 amounted to 406.4 billion tenge (an increase of 119.4 billion tenge or 41.6 percent compared to Jan.1, 2015) and as of Jan. 1, 2017, 402.3 billion tenge ( a decrease of 4.1 billion tenge or 1 percent compared to Jan. 1, 2016 ).
The official exchange rate for Dec.18 is 335.33 KZT / USD.