Insurance in the frontier markets ±aŠakhstan has a ro ust reuatory ‚eveoments in the reuatory environments of the three countries can aso imact framework and in ‘Šer ai“an… a insurance sector rowth‡ In ±aŠakhstan… insurance has enefited from a stron and new unified system for damae riorous reuatory framework… ookin to e more or ess comiant with E¥ norms‡ assessment in motor insurance ˆhe use of E¥ usiness ine cassifications has ena ed ood data coection and shoud uid consumer trust‡ monitorin of erformance‡ ˜eanwhie insurance aws have een made more consumer friendy‡ —or exame… tariffs and ia iity imits have controed remiums… which has further heed uid trust amon the ouation… as refected in the stron utake of vountary insurance‡ In ‘Šer ai“an… a new… unified system of damae assessment for motor insurance shoud he imrove caims handin… transarency and consumer confidence… athouh initia reorts suest decreasin caims and some customer dissatisfaction with the new system‡ —urthermore… the overnment has assed eisation to make settements of comusory car insurance caims more efficient and fraud resistant… and aso to increase the use of diitaisation‡ ˜eanwhie… ‘Šer ai“an “oined the auto insurance €reen card system in 2016‡2¡ —rom 1 ‘ri… ‘Šer ai“ani motorists have een a e to uy €reen card coverae in the E¥ mem er states… ŽwitŠerand and other countries‡ ‹ecent chanes to heathcare oicy In the case of €eoria… the unexected chanes to the nationa heathcare oicy in €eoria rovide an exame of resuted in a sum in medica remiums in 2014‡ ˆhis hihihts the need for how reuations can hinder insurance eisative odies to treat insurers fairy and incentiviŠe them to rovide attractive sector rowth‡ insurance soutions‡ ˆo romote investment and the transfer of forein caita and knowede… countries need to rovide a sta e… suortive reuatory environment‡ ˆhe introduction of takafu insurance ±aŠakhstan is investiatin the introduction of sharia†comiant ˆakafu insurance in ±aŠakhstan shoud aso increase to extend enetration amonst its redominanty ˜usim ouation‡ ”ther than enetration‡ mandatory covers… the utake of insurance amon the ˜usim ouation has remained ow‡ ˆakafu coud he overcome reiious† eief ased hesitations to uyin insurance‡ In ‘Šer ai“an… meanwhie… the overnment and insurers have made efforts to educate the ouation a out the enefits of insurance‡ ˆhe overnment is foowin the ead of ±aŠakhstan here in attemtin to make insurance aws more consumer friendy‡ ±aŠakhstan’s accession to the ¦ˆ” ‘nother common factor in the three markets is a romisin economic rowth wi usher in new cometition drivers‡ outook‡ Insurance enetration in the markets is ow and economic rowth shoud ead to more demand for insurance‡ Œomarin rea €‚ƒ rowth with non†ife remium rowth… the 2000†2014 averae remium rowth was dou e° comared to re†crisis rowth rates… as much as four times hiher‡ ˆhe three markets have moved sowy into the ower section of midde†income countries in the Ž†curve anaysis… indicatin that ains in insurance remiums shoud continue to outace income rowth‡ Imortant structura economic reforms are key to makin this haen‡ ˆrade†enhancin initiatives can aso sustain remium rowth momentum‡ —or exame… ¦ˆ” mem ershi shoud eventuay„ he ±aŠakhstan further oen its rea economy and financia sector‡ ˆhe atter… incudin insurance… wi remain essentiay cosed for forein articiation for a transition eriod of five years‡ ‰ut that is a reativey short eriod and in the interim… oca insurers wi seek to imrove their underwritin caa iities and roduct offerin so as to e ready to face forein cometition y 2020‡ ‘ ossi e outcome of forein entrants is that they coud reduce market concentration: currenty the to five insurers in ±aŠakhstan coect around ™0 of a remiums‡ 23 “ˆhe €reen Œard Žystem is a rotection mechanism for victims of cross† order road traffic accidents‡ It consists of 4 mem er countries reresented y 4¢ Nationa Insurers’ ‰ureaux‡” htt://www‡co x‡or/Œontent/‚efaut‡as?ƒaeI‚¯™¢ 14 Swiss Re sigma No 2/2016
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