WTO accession may lead to reduction in number of Kazakh insurers - expert
2012-09-27 16:10:30
Kazakhstan's accession to the World Trade Organization (WTO) in the medium term will reduce the number of domestic participants of the insurance market, managing director of JSC "Insurance Company "AMANAT INSURANCE" Daulet Akizhanov said, news agency Novosti-Kazakhstan reported.
Kazakhstan expects tariff reduction on insurance entities in 3-5 years after joining the WTO, in the event that the legislation governing the insurance market of the country will be adapted to international standards. This will happen as a result of entering Russian and foreign insurance companies to the Kazakh market, which have lower rates of 15-20%.
It will positively influence consumers, but Kazakh insurers will lose market share. As a consequence, for the domestic insurance market participants will be the most promising retail insurance and insurance for small and medium enterprises.
"This will provoke a serious competition in this segment of the insurance market, resulting in dramatically reduced number of Kazakh insurance companies, as some will be forced out of the market," the managing director of AMANAT INSURANCE added.
36 insurance organizations existed in Kazakhstan as of May 1, 2012 in accordance with the licenses issued by the financial market, 7 organizations had the operating license for life insurance, 24 companies - for mandatory insurance of vehicles' by owners. Also, there are 13 insurance brokers and 82 actuaries in this market.