Insurance remium rowth has imroved In ±aŠakhstan… insurance remiums rew in 201™ desite a shar economic recenty in ±aŠakhstan… sowdown‡ ”fficia data show remiums rose y more than 10 as rowth in ia iity insurance and roerty insurance remiums continued at dou e†diit rates‡ £owever… some ines exerienced a decine… such as aricutura and aso motor hu insurance‡ ›ife remiums rowth re ounded to 1¢ in 201™… after a 1¢ coase in 2014‡ Even so… ife insurance remains a very sma niche sement‡ ˜edica insurance decined y a out ™‡ … and aso in ‘Šer ai“an‡ In ‘Šer ai“an… ife and non†ife insurance remiums have continued to row in the ast few years‡ Žtron rowth in ife and medica insurance offset a sma decine in non†ife remiums in 2014… the atter due to weaker demand for roerty and motor cover‡ In 201™… tota ife and non†ife insurance remiums were u y a out ¡‡ Non†ife rowth was weak… at “ust over 1… as remiums in motor… the arest ine of usiness… fe ¡‡ £owever… there was a†more†than 20 increase in ia iity remiums‡ ˆhe insurance sector is rowin sower than efore the financia crisis… and current economic difficuties have ed the overnment to downrade its 2020 remium taret from ‘¹N 1 iion to ‘¹N ¢00 miion‡ Nevertheess… this imies an annua averae rowth rate of 10 over the next five years… comared with ¢‡™ annua nomina €‚ƒ rowth‡ In €eoria… remium rowth has een ˆota remium rowth in €eoria has een voatie in recent years mainy due to voatie‡ fuctuations in medica insurance… which rew raidy after the overnment moved to rivatise the heathcare system in 200¢‡ €ross written remiums in medica insurance increased 1†fod etween 2006 and 201¡‡ £owever… thereafter a overnment decision to reverse i eraisation… removin rivate insurance comanies from the rovision of u ic heathcare and renationaiŠin the administration of heathcare… resuted in a 61 contraction of medica insurance remiums in 2014‡ ”vera… non†ife insurance remiums in €eoria rew y over 10 er annum in the five years to 2014‡ ›ife insurance remains at an eary stae of deveoment… accountin for “ust ™ of tota remiums‡ rowth outlook Œomusory insurance rešuirements wi ˆhere are some common rowth drivers for the insurance sectors in the three oost insurance remiums in the three ŒIŽ markets‡ ”ne is the introduction of new cateories of comusory insurance‡ frontier markets … In ‘Šer ai“an… additiona comusory rešuirements… most nota y for medica and unemoyment insurance… wi ikey enerate remium rowth‡ ‘ comusory medica insurance system is exected to e introduced on a tria asis as eary as 201¢ since the overnment aims to shift the fundin of heathcare more towards rivate means‡ In ±aŠakhstan… meanwhie… there has een stron rowth in commercia ines‡ ˆhis… underinned y various comusory ines such as ˜ˆƒ›… rofessiona indemnity and workers’ comensation… is exected to continue‡ … articuary in €eoria… where ˜ˆƒ› ˜eanwhie… in contrast to the other ŒIŽ countries… ˜ˆƒ› insurance is not comusory cover is not yet mandatory‡ in €eoria and to date… the motor sement has remained reativey sma there‡ €eoria needs to make ˜ˆƒ› cover comusory: not ony is it a rešuirement of the E¥ association areement… it aso reresents a very visi e rotection a‡ ‘ aw to make ˜ˆƒ› insurance comusory is anticiated in 2016 and… once enacted… there wi ikey e a sinificant oost to tota insurance remiums‡ Swiss Re sigma No 2/2016 1¡
Insuring The Frontier Markets Page 13 Page 15